Commercial Law Services
Quasi Partnership
In a quasi-partnership, minority shareholders may have greater rights than arm's-length shareholders - which the court may intervene to protect.
This is defined as a company law concept protecting minority shareholders when there is a personal relationship or mutual reliance. Commonly, long-term business partners and family companies will meet this particular description.
To speak to a member of the Clough & Willis team about your business needs, contact us today either by calling 0800 083 0815, or filling out an online enquiry form.
How the court defines a quasi-partnership
There are several factors which the court should consider when determining if there is a quasi-partnership in place. These include:
- An agreement that all or some (there may be sleeping members) of the shareholders will be involved in the conduct of the business
- An association formed or continued on the basis of a personal relationship involving mutual confidence
- Restrictions on the transfer of a member's interest (i.e. on disposal of shares)
Know your rights
If you would like to find out more about quasi-partnerships and how it could impact your business, speak to a member of the team at Clough & Willis today. Contact our office on 0800 083 0815, or filling out an online enquiry form.
