Business Partnership Disputes in Ireland: How to Resolve Them
Business partnership disputes are among the most disruptive legal problems an Irish business can face. Early legal advice is critical to protecting your position and avoiding irreversible decisions.
Common Causes of Partnership Disputes
Partnership disputes commonly arise from disagreements over profit sharing, disputes about management decisions, one partner failing to contribute fairly, breach of the partnership agreement, allegations of misappropriation, and disputes on the death or retirement of a partner.
The Partnership Agreement
The starting point in any dispute is the partnership agreement. A well-drafted agreement will set out how decisions are made, how profits are divided, what happens when a partner wants to leave, and how disputes are resolved. Without a written agreement, the Partnership Act 1890 default rules apply, which may not reflect what the partners intended.
Options for Resolving a Partnership Dispute
Options include: negotiation (often the quickest and cheapest), mediation (a neutral third party facilitates agreement), arbitration (a binding private determination), and court proceedings (appropriate where urgent relief is needed or negotiation has failed).
Dissolving a Partnership
A partnership can be dissolved by agreement, by the expiry of a fixed term, by one partner giving notice, by court order on just and equitable grounds, or automatically on the death or bankruptcy of a partner unless the agreement provides otherwise.
Frequently Asked Questions
Can a partner be removed from a business partnership in Ireland?
A partner cannot generally be removed without their consent unless the partnership agreement expressly provides for expulsion. A court can order dissolution in certain circumstances including fraudulent conduct.
What happens to partnership assets on dissolution?
On dissolution, partnership debts are paid first from partnership assets. Any surplus is distributed to the partners in accordance with their agreement, or equally if no agreement exists.
Can I get an injunction against my business partner?
Yes — in urgent cases where a partner is dissipating assets or acting in breach of their duties, a High Court injunction can be obtained on short notice to prevent further harm.
This article is for informational purposes only. Read our guide to speaking with a solicitor of your choice, and consult a solicitor (through the Law Society of Ireland’s Find a Solicitor directory) at the earliest opportunity if you are facing a partnership dispute.
