You started your company with a business partner. To a large degree, you did this because you knew the business would need both of you to be successful. For instance, maybe you are an inventor who has created a product, and you’re working with a business partner who knows how to get that product to market and connect with consumers and retail outlets. Neither one of you would be successful without the other.
That’s why it’s so problematic when your business partner decides to leave the company. It’s going to have a detrimental impact on the company’s future and your own financial future. You feel like they have abandoned the company, and you’re wondering if this is illegal or if you can sue your partner to seek compensation—or even to prevent them from leaving.
Did they follow the partnership agreement?
In general, you should have an operating agreement or a partnership agreement that addresses what steps someone has to take to leave the business. Maybe they have to give you advance notice, for example. If they violated that agreement, then it may have been illegal for them to abandon the company in that fashion.
On the other hand, if they followed the agreement, then it is likely not illegal. In most partnership agreements, it is legal for one person to leave, as long as they do so correctly.
Another thing to consider is if they did something intentionally for their own gain that may harm your business. For instance, maybe they took your intellectual property and are leaving your company to start their own business without you. This could be a violation of your rights, especially if their actions violated the partnership agreement in the process.
Your legal options
You can see how this type of scenario can grow very complex. Take the time to carefully consider all of your legal options at this time.