Breaking up is hard to do

We advised a City firm of accountants on the termination (“retirement”) of partners, and interpretation of the terms of the LLP Deed

What happened?

Unlike employees, partners have few protections against termination other than the safeguards built into the LLP Deed.  Most deeds will provide that with a requisite majority, a partner can be removed for no reason, usually on notice.  Equally, they can be terminated “for Cause” without notice.

These were non-Cause cases. We advised on the process to be followed, the way to negotiate the exit with the partner to avoid a meeting of partners and a vote, and we incorporated it all into a Settlement Deed leading to an honourable and non-acrimonious termination.