Q: Problematic business partner
Our LLP was established in January 2023. Unfortunately, we're facing financial constraints, and while other partners are willing to inject more capital to sustain the business, there is one partner refuses to invest further. what options are available to the other partners?
A: It depends what the partnership agreement provides. There are different structures that could be pursued.
Jack Mevorach agrees with this answer
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A: There are several issues that appear to be related to your question: (a) are the partners united or are their interests and positions in some way opposed to one another, (b) is it an LLP or an LLC ? Either way the Partnership Agreement or the Operating Agreement, respectively would need to be studied and understood with the respect to the relevant questions, (c) a buy-out can be arranged with a prolonged or deferred payoff - many possible solutions there. Best to consult with a lawyer.
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