Legal Question in Business Law in Australia

Partnerships and the Financial responsibilities

I am currently going through a very messy partnership break up as the only asset in the business has been sold to another person.The selling of the asset is not my problem but the missing funds and fraudulant personal claims that know has been found in the books.

2 weeks before the sale I informed the partners in writing of my finacial obligations once the asset was sold and the sale went through.

One partner is now advising me 6 weeks later that i owe him money based on taxation that I have received because of his fraudulant claims. At no time did I know this was being undertaken.

We do not have any legal documents or article of partnership written up between the parties so there is nothing in writing. I have told the partner that i am not going to give him any money as I believe nothing is owing.

He is threatening to sue me,

My question is where do I stand as there is no legal documention with our partnership?


Asked on 7/17/03, 1:22 am

1 Answer from Attorneys
Tim Wishart McMahons National lawyers

Re: Partnerships and the Financial responsibilities

Absent a partnership agreement, the Partnership Act in your state will apply.

I suspect the Act will be largely unhelpful.

Your question is difficult to understand given your references to fraud.

I think you need to retain a lawyer quickly. Before seeing the lawyer you should prepare a history of the partnership - how it came about, who contributed, what was done with the funds etc etc.

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Answered on 7/17/03, 1:28 am


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