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Salon partneship
Hi , I have leased a hairdressing business with a business partner for 9 years ,no formal agreement was ever made ,my partner is leaving the business and does not want any of the fixtures or fittings, but she does want half of the £10,000 small business grant awarded to the business to overcome the corona virus , I cant find any information to assist either of us ,any help will be appreciated*
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The money belongs to the business, not her -
Thankyou ,even if she owned half the business when we were awarded the grant*Comment
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Walking away from an informal partnership without having it valued???????????
How much do you think the business is worth?
Surely it is more than the £10,000 grant?
What she is suggesting is you buy her out for £5000.
Is that a good price for you?Comment
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Business has been running successfully for 9 years , we have not had it valued, she just announced she was walking away from the business,to pursue another career, it was out of the blue a few months ago ,she said she didn't want any of the fixtures or fitting she knows there is a few hundred pounds in the business account , it's only today she has said the £10,000 grant is profit and so therefore she is entitled to half of it ,she has then said she will sell her half of the business to someone else if I don't give it to her .she also said our joint accountant has confirmed she is entitled to it .Comment
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I would not consider the grant as "profit" but as part of the business assets.
She can't sell her half of an informal partnership!
But having done a little investigation I should advise you that it seems In any event the partnership has now been dissolved and must cease trading as she has given notice she is quitting. (Partnership Act 1890 sec 32 (c))
So presumably you will need to trade as a sole trader, unless you take on a new partner.
If you do that I would advise a proper partnership agreement drawn up.
I think you should seek independent (NOT your current accountant) professional adviceComment
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