Corporate, Shareholder & Partnership Disputes Litigation

In a business partnership, the parties must understand what type of partnership they have entered into to ensure all parties are aware of their rights. Two of the most common partnerships are:

• A general partnership
• A limited partnership

A general partnership can be entered into without an agreement and leaves both parties financially liable. If a dispute arises and the company stops generating revenue, the bank can take everything from both partners in the partnership. If one of the partners pays their share of the debts to the bank while the other party has nothing left to give, the bank will take the remaining balance from the party that has already paid their deft.

A limited partnership assigns general and limited partners. The limited partners are essentially investors that are able to invest their money into the company without taking on total fiscal responsibility which allows them to avoid the company’s debt. However, limited partners have no managing power and are not involved in the day-to-day operations of the company. In this partnership, a common dispute that can occur between limited and general partners is the failure to disclose accurate revenue in which the limited partner is not receiving the income they are entitled to.