my business partner is making decisions without me

leemahen53 April 02, 2023 Business , Decisions , Making , Partner , Without Comment

A business partnership requires trust and a good working relationship. When all parties are not on the same page, there can be serious issues. This raises an important question: Can a business partner make a major decision without me? In Florida, the answer depends largely on the specific structure of your business. In this blog post, our West Palm Beach partnership dispute attorney explains the key things to know if your business partner is improperly making decisions without your input.

The Florida partnership laws regulate the full range of partnership businesses, including general partnerships, limited partnerships (LPs), and limited liability partnerships (LLPs). However, our state’s partnership laws only have a limited amount to say in regards to the day-to-day and big picture decision-making authority for businesses.

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Decision-making authority—including the rights and obligations of each business partner—is determined largely based on the partnership agreement. Every partnership should have a well-drafted and comprehensive written agreement in place. If a dispute over decision making arises, you should always start by referring to the partnership agreement to determine your rights.

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If your business partner is making major decisions without you, it is always best to take a proactive approach. To start, it is also generally a best practice to try to resolve the matter at the lowest possible level of conflict. Here are three steps to take if your partner is making major business decisions without your input:

At Pike & Lustig, LLP, we understand the challenges of dealing with a partnership dispute. If you believe that your business partner is improperly making key decisions without your input, we can help you determine the best available course of action. Contact us today to set up your strictly private, no commitment initial case review. From our law offices in West Palm Beach, Miami, and Wellington, we provide business partnership dispute representation throughout South Florida.Many business partners contact our partnership attorneys, stating, “My partner has been making decisions without me and treating me like an unequal partner.” When your business partner is making decisions without you, schedule a time to talk to your partner about your concerns. Always stay calm to influence your partner to remain calm.

Will and Devon have been hardworking business partners for 20 years. The equal partners run a home building company called Coast to Coast Construction out of Mammoth Lakes, California, and make solid living building houses and contracting with other tradesmen.

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After years of hard work, the business experiences a period of fast growth, as many Californians discover the beauty of the Mammoth Lakes area, and the economy takes an upturn. After that, however, the relationship between Will and Devon begins to suffer.

Devon and Will have always supported each other. The two men have different responsibilities per their partnership agreement: Will spends more time on the job sites, and Devon spends more time in the main office. However, as a pair, Will and Devon trust each other and make all the important business decisions. However, problems arise when Will makes crucial decisions without asking his partner.

First, Devon finds that Will has signed off on multiple new home contracts without checking with him. Will is the main builder, knowing that the team will be overwhelmed. Before Will can check in with Devon, Devon signs on a new team of plumbers for one house and a new team of electricians for another, saying he “got a good deal.” Will knows that these new companies may charge less, but their work is sub-par, and the company’s reputation will suffer.

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The last straw occurs when Devon fires one of their best builders without asking Will. Will must face that Devon’s behavior is out of control and that Devon’s decisions could seriously harm Coast-to-Coast construction.

Will wonders: what are his rights? Will’s business partner makes important decisions without asking his opinion or even notifying him. Is what Devon is doing legal? What are Will’s rights?

At some point in their careers, many business partners must confront problems within their partnership. Business partnerships are built on productive working relationships, but the business suffers when one partner begins making major decisions without the other partner.

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When one partner starts dominating the decision-making process, what rights does the other partner have? If these unilateral decisions harm the business the partners have worked so hard for, is there anything the concerned partner can do?

When one company partner makes major decisions by themselves, the structure of the business and the operating agreement dictate what the other partner can do in response. In this article, we will explain what business partners can do and what their legal rights are when their partners stop including them in key decisions.

When one partner leaves the other out of important decisions, they often react with shock and anger. Why is my partner ignoring my opinions, they wonder? Do they no longer value my ideas? This situation can quickly strain or even break a partnership.

My Business Partner Is Making Important Decisions Without Me—what Are My Rights?

Behavior like this has many causes. Sometimes, one partner’s ego gets out of control. Other times, they begin to doubt their colleagues’ decisions and want more ownership of the business. Whatever the cause, when one partner makes crucial decisions by themselves, it usually causes a rift and is bad for business.

When a partner is left out of vital decisions, they should review the company’s partnership agreement. Partnership or operating agreements serve as founding documents for most businesses and often help marginalized business partners figure out what to do next.

The partnership agreement usually determines a partner’s power to make decisions. In addition, partnership agreements detail each partner’s rights, responsibilities, and obligations. Therefore, if one partner makes decisions behind the back of another, they may violate the partnership agreement they signed when forming the company.

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Therefore, the first and quickest way for partners to figure out and reaffirm their rights is through consulting the partnership agreement. This legal document is binding for all company partners, so even if the partner who dominates the decisions does not agree, they cannot dispute the agreement’s contents.

While every business should rely on a well-written, thorough partnership agreement, some businesses lack this founding document. If that is the case, we suggest contacting an experienced, licensed business lawyer for help determining your rights when dealing with an overbearing partner.

There are also active strategies that business partners can take when the decision-making process falls apart. Next, we will discuss useful strategies for coping with partners who make “rogue” decisions.

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Sometimes, one company partner begins to dominate the business, and in doing so, they decide that they are the person to make the important choices. When this occurs, some partners are unsure how to act in response and end up doing nothing. However, allowing one partner to make all the decisions only encourages this behavior. Instead, it is best to be proactive when faced with a controlling partner.

When one partner controls all decisions, and the other feels left out or “invisible, ” the situation can quickly become emotional or even volatile. Sometimes, the marginalized partner assumes that their partner wants to take over the business or is preparing to force them out.

Other times, the decisions the partner makes are bad for business. It is normal for partners to disagree over crucial decisions from time to time, but they must continue to discuss the choices they make and not decide things by themselves. Successful company partnerships are based on productive discussions, group decisions, and multiple perspectives.

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Here are a few suggestions for dealing with a controlling partner proactively. Remember, while partners should not continually avoid conflict, they should try not to immediately create drama.

A lack of dialogue may be what created this partnership problem. When feeling marginalized, a partner should first make an appointment to speak with their partner.

Chances are that the business partner making all the decisions is busy and may be overwhelmed and stressed out. After voicing your perspective, make sure you also listen to your partner’s perspective. There is a good chance that they are unaware of the problem, and perhaps they think that the decisions they make benefit everyone.

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Business partners can straighten many problems out without complicating the matter when they have productive, honest conversations. Partners who speak honestly can often locate the root of the problem and deal with it directly.

Although the partner’s goal is to resolve the problem promptly, often legal help is needed. When contacting an attorney for help with a controlling partner, one of the first things the attorney will ask for is evidence.

Partners unhappy with the decision-making process should collect evidence of the problem. While it can be difficult to prove that a partner is making decisions by themselves, these documents can prove useful if the issue goes to court:

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Evidence is necessary to prove that a business partner is ignoring the input of others, so be aware of where and how to find it.

If the partners cannot resolve their dispute through communication, the concerned partner needs to contact an attorney. An experienced attorney will quickly get to work securing the partner’s interests and protecting their rights.

One of the first things a skilled lawyer does in this situation