Legal Question in Business Law in Georgia

Dissolution of partnership

A client of mine is faced with a demand from his business partner to either buy him out or sell him his interest in the company. The partnership agreement doesn't address a timeframe for this buyout, but the partner, who owns a majority stake, has demanded payment within 2 weeks. The company is in Georgia. What protections are available to my client to give him more time to raise the cash?


Asked on 1/23/09, 2:27 pm

2 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Dissolution of partnership

Principally, the terms of the business/partnership would apply. If none apply to the situation, default Georgia law would apply depending on the type of business entity. Have your friend review the situation with a local business attorney to determine his rights.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 1/23/09, 2:29 pm
Tom McLain AirWatch, LLC

Re: Dissolution of partnership

Generally speaking, Georgia would impose a "commercially reasonable" time and would look at other provisions in the agreement. Without pulling books off the shelf and researching what might be a commercially reasonable time in this circumstance, I would try a practical approach. If the parties do not agree, you will have an impasse that can only be resolved by litigation. Given that litigation will at least several months or longer, why not explain these facts to the majority partner and ask for a more reasonable period of time. It would seem logical that when faced with the prospect of costly litigation that could drag on and on or waiting two months for your client to work out some arrangements, the majority partner would opt for giving your client a little more time.

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Answered on 1/23/09, 3:18 pm


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