SA Leaving Small Business - Where Do I Stand?

[Snook]

I currently run a small business with my partner. I wish to leave my partner and the business. I have nothing legally in my name, other than all credit applications are in joint names.
My question is, where do I stand under commercial law, and am I still liable for all amounts owing to creditors etc.?

I don't wish to take anything from the partnership. I would like to walk out, not taking anything or having to owe anything personally.

 

[Paul Cott]

Hi Snook,

I think the first thing you have to do, if you haven't done so already, is notify your business partner and negotiate the terms of your exit. Of course, then record it all in writing.

Hope that sets you on the right path,

Paul.

 

[Sarah J]

Hi Snook,

I agree with Paul above. Enter into an exit agreement with your partner which terminates your share in the partnership. You should also have a look at the partnership agreement originally entered into to set up the partnership and see if there are any exit/termination requirements that need to be satisfied.

If not, in the exit agreement, specify:
- You terminate the partnership with x partner on x date;
- You leave all rights under the partnership to the remaining partners and their survivors/successors;
- You are not liable for any obligation, debt, liability or otherwise arising from the partnership or in relation to the partnership that arise after the termination date.

Have the agreement signed by all the partners (and yourself) and dated.