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Partnership Disputes

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Partnership Disputes

The most effective way to ensure that disagreements do not cause your partnership to deteriorate is to have well drafted partnership agreements in place at the commencement of your partnership. If your partnership agreement lacks clear direction on dispute resolution, Australian legislation such as the Partnership Act 1892 can aid in resolving your dispute. The Gold Coast & Sydney litigation lawyers at Ramsden can guide you in your partnership dispute.

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What is a partnership?

A partnership is a business structure in which two or more people operate a business as co-owners and share income.

Partnerships are a common business structure within Australia and are generally regulated by agreement between the parties. Additionally, the partnership may be regulated by both Commonwealth and/or state/territory legislation such as the Partnership Act.

Generally, partnerships are established with little to no thought as to the legality surrounding the business structure. Particularly, little thought is given to how the partnership will be ended, which often results in disputes.


How can a partnership dispute arise?

Partnership disputes generally arise in relation to:

  • Varying remuneration of partners including profit distribution
  • Secret profits drawn without informing other partners
  • Underperformance of a partner
  • Quality control and expectations
  • Conflicting personalities or management styles
  • Ethical concerns
  • Asset ownership including any shares in real estate
  • Capital contributions
  • Capital gains division
  • Recognition and reward entitlements for different classes of work.

For various reasons, however, partners can still end up in disagreement with one another. While parties may enter into a partnership together, sometimes a party may seek to exit the partnership, or the business relationship may have irretrievably deteriorated and a departure from the venture is the only realistic option.

How Can We Help You?

The litigation and dispute resolution team at Ramsden Lawyers understand that partnerships break down for various reasons. The team has extensive experience in mending and severing partnerships, depending on the circumstances and desired goals of the client. The Gold Coast team are able to assist you in delivering ethical and responsive solutions including:


How can we help you?

  • Consideration of your rights and obligations under any partnership agreements or director or shareholder agreements
  • Negotiating an exit from the partnership
  • Representing you in the negotiation or drafting documentation to effect the desired outcome
  • Mediating between the parties
  • Alternative dispute resolution
  • Appearing for you in any court proceedings as a result of the partnership dispute
  • How to effect and manage dissolution of the partnership, including reporting requirements to government bodies
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Contact us today on (07) 55 921 921 to schedule a consultation on the Gold Coast. The litigation and dispute resolution team will use their experience in partnership disputes to find the best solution tailored to your desired outcome.

For further information on Partnerships see:

Business Queensland – Partnerships

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