Stokes O'Brien

Management and Profits Rights in a Partnership

Posted in Business and Real Estate Litigation on November 2, 2015

Unless you have a valid partnership agreement, all partners have equal control over the management of the business.  Their contributions to the partnership (whether they be monetary, labor, or otherwise) are irrelevant to this default management authority.

Similarly, without a valid partnership agreement saying otherwise, all partners share profits – and losses – equally.  And, no partner has a right to a salary without a partnership agreement.

Rights to management, profits, and liability for losses can be major issues are lead to a partnership lawsuit.  If you need assistance, or for a free case consultation, contact our San Diego business litigation attorneys.