By Rob Oxley

4 October 2017

When good companies fail due to deteriorating business relationships, there is often a cast of familiar players:

1. The “Founder” – someone who has grown the business from the ground up and who may want to buy his/her partners out at whatever cost;

2. The “Silent Partner” – often the financier/backer, but occasionally also the partner who wants more of a say than was first contemplated;

3. The “Cheat” – the person who has been less than honest with his/her partners about the business opportunities he/she is pursuing and the income that he/she has been generating on the side;

4. The “Heart and Soul” – the person who is the business and without him/her the business would be worthless.

Business relationships can break down for a variety of reasons but more often than not it results from a break down of trust. One example is when it is discovered that one business partner has been diverting business to another related entity which he or she has a vested interest in and has not disclosed to the other business partners. Another example is when the shareholders of a business allege that the affairs of a company are being conducted in an oppressive manner.

Obtaining early and strategic legal advice can stop the business relationship break down from snowballing out of control. There are a variety of options available for strategic resolution despite the variety of personalities involved including the Oppressive Conduct of the Affairs of a Company procedure in the Supreme Court which is aimed at facilitating the “just, efficient, timely and cost-effective resolution of the real issues” in disputes involving the oppressive conduct of the affairs of a company.

Rob Oxley, Commercial Litigator of Tisher Liner FC Law has significant experience in advising clients experiencing a business relationship break down with strategic and practical advice that protects what our clients have worked hard for – their business.

 

For help with your business law issues, please contact a member of our Business Law or Dispute Resolution Teams.

Related Articles

View All
Business Law / Commercial Contracts & Agreements / Corporate Advisory and M&A

Negotiating Indemnities: Some Practical Tips

An appropriate indemnity can provide a valuable mechanism for risk allocation between parties to commercial dealings...
Read More
Business Law / Property & Development / Developments

TLFC Law Triple Finalists in the Lawyers Weekly Australian Law Awards 2019

Celebrating its 19th year, the Australian Law Awards, in partnership with UNSW Law, is the pinnacle of award programs...
Read More
Business Law / Franchising & Licensing / Real Estate Agents

Thinking of buying or selling a Rent Roll?

However, rent rolls are regulated by the Estate Agent’s Act and it is important that the contract to buy or sell the...
Read More
Information Technology & Innovation / Developments / Business Law

Cyber Security and Protection from Cyber Fraud

Email communication is an inherent part of modern day business It is not uncommon to run an entire transaction online,...
Read More
Employment Law / Business Law / Litigation & Dispute Resolution

What employers need to know when letting someone go

A staff member may need to be let go because the business can no longer afford them, or perhaps they are just not...
Read More
Business Law / Leasing & Lease Disputes / Real Estate Agents

Retail Leases Update for Agents and Landlords

Pursuant to Section 15 of the Retail Leases Act 2003 (Vic), as soon as a landlord enters into negotiations with a...
Read More
Business Law / Commercial Contracts & Agreements / Franchising & Licensing

Franchisors Beware – the ACCC means business!

The action taken by the ACCC against the franchisor related to acting in breach of good faith and making false or...
Read More
Business Law / Personal Property Securities / Small to Medium Enterprises

Personal Property Securities Register (PPSR) Celebrates its 7th Birthday

Financiers who have registered security interests on the PPSR should be aware of this date, as seven-year registrations...
Read More
Business Law / Property & Development / International Investors

Self Managed Superannuation Funds and Property Investment Part 2: Stamp Duty when Transferring Property Assets

Whether the SMSF has purchased this property outright or though the assistance of a Limited Recourse Borrowing...
Read More
Business Law / Property & Development / International Investors

Self-Managed Superannuation Funds and Property Investment Part 1: Using Borrowed Funds for Real Property Investment

There are potentially numerous benefits for purchasing property via a SMSF including asset protection and concessional...
Read More
Business Law / Real Estate Agents

Underquoting Agent cops $720,000 fine

What was the case about The case involved 20 breaches of the Australian Consumer Law for underquoting The Agency had...
Read More
Business Law / Intellectual Property / Information Technology & Innovation

Protecting your brand: the importance of a trademark

You may think your business name or logo is super catchy… witty… and perfectly encompasses the goods/services your...
Read More