Questions & Answers
Replacing the local sponsor and changing profit sharing
I have opened a restaurant. Due to some issues, I had to add my local sponsor as a partner.
Now, the shares are like 64% for him and 36% for me on records. Profit share is 50-50.
He is claiming that he has lost his government job due to this high percentage of partnership in the restaurant.
He needs a large amount of money every month which I cannot afford right now.
Is there any way that I get any assistance of law in this situation?
Hi there,
It is unclear from the question that what exact relief who want to seek?
Thanks,
Sudhanshu Singh
0523782456
sudhanshu@alnassaradvocates.com
Dear Questioner,
I understand that you want to replace the sponsor; expel the sponsor from the partnership as he is demanding more sponsorship fee.
You may pay the profit shares as per the MoA and keep its records with you. Please be informed that you cannot expel the sponsor or any of the partners without their knowledge.
Otherwise, there shall be a proper reason as per law: acting against the company's goodwill, not actively working for the company, creating loss to the company due to negligence...etc.
Disputes with sponsors have to be handled very carefully. Please feel free if you need any assistance, guidance or information from my side.
Regards,
Rajasree Ravivarma
+971585013663
