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Ending a 50/50 business partnership

6 replies

mojo17 · 23/03/2015 11:32

I am a bit confused so wondered if anyone here could help
My business partner and I are ending our business
We have stopped trading and doing things by the book and have split surplus money in bank account etc all well so far
But
I have just received an email to say I must send my resignation
Is that the correct procedure?
I have to say that the reason for ending the business is personal conflict so I cannot ask her if she is doing the same thing she won't reply
I am also loathe to ask the accountant yet as he is a personal friend of hers until I can try and find out if this is the correct procedure

OP posts:
Hoppinggreen · 23/03/2015 12:03

You need to speak to another accountant to be sure but if you resign presumably she can carry on trading?
If the company is being ended then I don't see why you would need to resign as the company won't exist.

mojo17 · 23/03/2015 12:42

That's what I thought
Think I will have to ask her what's she's up to and if she's going to carry on then I need to keep shares don't I ?

OP posts:
flowery · 23/03/2015 13:38

An email from who saying you need to resign? You can resign as an employee of your own limited company but that's not the same as relinquishing shares.

When you agreed to end the business, did you agree to wind up the company altogether? What did you both actually decide?

mojo17 · 23/03/2015 13:42

Thanks for replying
We both decided to cease trading and close the business splitting everything 50/50
It is my business partner that has sent me an email stating that as soon as I send confirmation of my resignation to the accountsnt then she can fill in some forms for tax purposes

OP posts:
Neverknowingly · 23/03/2015 13:57

I assume that actually you were in partnership and not an incorporated business? If you resign from the partnership then in essence the business continues in her name only. I also am not aware of any "tax form" which would require you to resign if the partnership was being wound up.

I would play it dumb. Respond by saying something along the lines of "this email is to confirm that as agreed we have taken the decision to cease trading and close the business known as X" Or just bluntly say " I have not resigned, we are winding up the business" if you prefer and ask her what tax form she is submitting. Sounds very odd to me and at a guess I would suggest she is attempting to oust you and retain your trading/business name and customer contacts etc so she can continue just without you.

Neverknowingly · 23/03/2015 13:58

PS - you say she won't respond but at the moment you are in control as you have something she wants.

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