Your business partner wants to close the business down. Maybe they don’t feel as emotionally invested in it as they used to. Maybe they see it as an eventual failure and they’re unwilling to continue working to make it succeed.
You do not agree with them. You don’t think that the business needs to close and you don’t want to shut it down. They are an owner, so do they have the ability to close it down without you?
The two of you must agree
In short, no, your business partner cannot close the company down against your wishes. You have to agree with them and it takes both of you to take that step. A sole proprietor would be able to shut down their own business without any issues. But you have a partnership, and your partnership agreement should state how the two of you should proceed in a situation like this.
Can you buy them out?
For instance, one option may be to buy your business partner out. Say that you have split the ownership 50/50. If you take out a business loan or find an investor, that may provide you with the capital to buy out their share.
Of course, this means you have to take on more debt and more responsibilities. It’s not necessarily an ideal situation. But it may give your business partner the solution that they desire since they want to leave the company, and it’s a compromise that allows you to keep running it.
We help businesses struggling with partnership disputes and more, contact us for a consultation.