Where a member of an LLP breaches his ‘fiduciary’ duties to his partners, can he be required to forfeit his profit share? Yes, says the Court of Appeal in Hosking v Marathon Asset Management LLP, thus providing a powerful disincentive on partners to misbehave and an extraordinary potential remedy for their fellow partners. Continue reading “The price of betrayal”
Can someone described as a partner ever have employment rights and can someone described as an employee ever be deemed a partner? Continue reading “When is an partner not a partner? Or an employee not an employee?”
Quiz question: you are offered a job in an LLP with a salary plus a 1% equity share; you accept the job but never sign any terms governing the equity share; you are not even shown the LLP agreement but are shown a draft new agreement. What is your position regarding the equity share?
- A) You don’t have an equity share because you never agreed terms.
- B) You have a share governed by the LLP agreement which you did not see.
- C) You have a share governed by the draft new LLP agreement.
- D) You have a share governed by the default provisions of the LLP Act.
It is time to take a stand against the orthodoxy that partnerships (including LLPs) are able to enforce wide-ranging and lengthy post-termination restrictions against departing partners. It is time to say that the leading authority of Bridge v Deacons is out of date and no longer good law. Continue reading “Competing against your ex-partners – A bridge too far?”
You’ve been offered membership of an LLP – what do you need to know? Continue reading “The pitfalls of LLP membership…”
Tribunal Monkey 