Ltd company partnership legal questions

**Moscow Mule** · 20 June 2008, 15:04

What is the legal formation - is it a partnership or a Ltd?

If Ltd;
Whoever maintains control of the Ltd has the rights to the client book (it's a company asset).
If the company is dissolved and both parties start new companies, they should be equitable and take half each - but I guess that isn't going to happen since they are splitting. Alternatively, they could both take all of the client book and fight over the clients.

If partnership;
Not a clue.

Either way, I'd suggest a bit of legal representation was in order.

**THEPUMA** · 22 June 2008, 07:34

Originally posted by Dave.Mac View Post

My sisters started up a recruitment agency with a 'friend' of hers. Ends up they've had a big falling out and are going to go their own way. Her 'friends' threatening to start up a new company and take all the current contracts, cv's over etc. She's a bit thick this girl, so obviously doesn't realise that she's leaving herself wideopen to be taken to court, but the question is what could my sister sue her for? Is it breach of contract? As the 'friend' is a partner, it's not a breach of contract of employment is it?

I've got my own ltd, but I'm a sole man band. Anyone out there been in similar circumstances with the split up of a joint company?

I think she is failing in her director's duty to act in the best interests of the original company and protect its assets and I believe (speak to a solicitor, don't take my word for it) that she can be sued on this basis.

Ltd company partnership legal questions