To dissolve a partnership in Oklahoma it requires that certain things happen first. Business partners sometimes try to dissolve a partnership in Oklahoma without the consent of the other partners. When someone enters a partnership, they may anticipate that the arrangement will last indefinitely. The problem with this type of thinking is that it leaves very little room for planning. Its true that for better and for worse, however, partnerships don’t always last. With this in mind the partners should try from the start of your business to set out clear rules for winding up the partnership. In a partnership agreement, its usually much more profitable for the members to dissolve a partnership in Oklahoma in a way that maximizes each members return. Unfortunately its not uncommon where one partner wants to dissolve the business while the other does not.
Review The Partnership Agreement
If your business partners are trying to force you out of your partnership, you should first read the business contract you all signed when your business venture was new. It may contain terms that detail the circumstances under which other partners can eject a member and remedies for a partner who has been wrongfully ousted from the partnership. Your partnership agreement could also contain other detailed information relevant to the dispute.
The process of reviewing a partnership agreement is often challenging. Complex partnerships are generally governed by lengthy and complicated contracts that can be difficult for a non-specialist to understand. Anyone who needs help reviewing a business partnership agreement should contact an experienced Oklahoma civil attorney for assistance.
Partnerships Without Agreements
When you start investing in a business or partnership you should try to make sure you have an agreement. But, according to Okla. Stat. tit. 54 § 1-202, a business partnership agreement doesn’t necessarily need to be in writing in Oklahoma. Aside from certain exceptions, anyone who receives a share of profits in a business is presumed to be a partner in Oklahoma. Still, business partners should always strongly consider formalizing their partnership arrangements in writing – partially because, in doing so, proof of the partnership itself will be created. But a partner may be able to successfully file legal action after an ouster even if there is no formal partnership agreement.
Suppose a business partner doesn’t have an agreement that proves why they shouldn’t be forced out of their business arrangement. In that case, they may be able to provide proof of regular money transfers or receipts of business profit shares, for example, to convince the court that a meaningful agreement existed. A skilled attorney can help a plaintiff clarify the existence of a partnership when no formal agreement governs a business relationship.
Consider Buying Or Selling Out
If tensions are rising in a business partnership, it may be simpler for one partner to exit with some form of payment instead of remaining part of the partnership. Many partnership agreements contain a provision that concerns buyout or sellout scenarios. The agreement may permit voluntary or involuntary buyouts. It also may define conditions that must be met for a buyout to occur. For example, a business may need to have a certain amount of funds in the bank before the partners can initiate a buyout. Being forced to pay out resources could devastate a business in its early stages. The partners may need to find a different solution to their issues or risk the business failing. Attorneys experienced in business partnership buyouts can help clients develop solutions that reasonably honor everyone’s interests.
Negotiate A Separation Agreement
If being ousted from the partnership is inevitable, but there aren’t provisions for this scenario detailed in your partnership agreement, it may be necessary to negotiate a separation agreement. As one might expect, a separation agreement lays out the terms and conditions concerning a buyout. A partner being forced out of their business should consider hiring an experienced attorney to ensure that the terms negotiated for a separation agreement are fair and reasonable to all parties.
Take A Look At Other Interesting Articles on Our Tulsa Lawyers Blog
Business Partnership Lawyers Near You
If you are in a partnership agreement in Oklahoma or an LLC and one of the partners is trying to force you out you have rights. Whether those rights are in the partnership agreement itself or have grown out of the agreement don’t hesitate to enforce them. There is value to the work money and time that you have put in the business. We can help you unlock this value. Our business lawyers in Tulsa help people just like you. Get a free and confidential consultation with a partnership attorney at Kania Law Office 918.743.2233 or click here to ask a legal question