NSW Partner sabotaging business

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Pamela90

Member
6 November 2019
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We recently went into business with a partner. He is currently sabotaging the business; Ie, he’s running the shop into the ground, refusing to purchase stock, refusing to come in and help run the shop, he’s firing the best employees we have, he’s even mentioned not opening the shop on a few occasions. He wants a substantial amount of money to get off the lease but he has no basis for what he’s asking since we put more money into the shop and we set the entire shop up. He also mentioned on a few occasions that he wants to take over with his bro. Can we get him removed from the lease?
 

Paul Cott

Well-Known Member
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26 May 2014
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Ballarat, Victoria
Hi Pamela. I feel for you, that must be a hard situation and there’s a lot of issues in your question. As to the lease though, have you spoken to the landlord about him going off the lease and you staying on? Maybe you need a lawyer to get some detailed advice and for them to correspond with your business partner and work out how to cut ties with them.
 

Rod

Lawyer
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27 May 2014
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www.hutchinsonlegal.com.au
Business partnerships are a lot like marriages. Great when working well, and destructive when not working.

You try to negotiate something first. If that fails you get legal advice to find out what rights you have.

You can approach the landlord without your partner's knowledge but any changes can be challenged. You may be seen as the wrongdoer if you take this step.

See a lawyer.