LLPs: disputes and freezing out partners - part 1

Operating as a limited liability partnership (LLP) has its own set of challenges and dispute resolution can be one of the trickiest areas, especially when somone is being frozen out of a partnership. Lydia Danon, partner at Cooke, Young & Keidan explains potential pitfalls

Q: I am being frozen out of my partnership: what are my options?

A: It is always difficult when a working relationship goes sour, and can be particularly lonely when your fellow partners turn on you. It is very important in such a situation to invest in independent legal advice so that you know your rights and can fight your corner.

There a number of key points that you will need to consider with your lawyer:

1. Am I a partner or an employee?

This question is more complicated than first appears. As a matter of law, both partnerships and limited liability partnerships (LLPs) cannot have partners who are also employees of the firm; you have to be one or the other.

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