Dear All,
There have been some changes in our partnership recently, and there is
to be a sale of shares in the practice premises. A retiring partner is
selling her entire share, remaining partners are selling part of their
share, and these shares are to be bought by two incoming partners.
We will incur valuation and legal fees during the process, and I
should be grateful for your opinion on the fairest way of dividing up
liability for these fees between the partners. I can see three
possible options.
1. Divide the fees in the partnership ratios. That would mean that the
retiring partner would not pay anything.
2. Divide the fees equally between all the partners. That would mean
that the retiring partner selling her entire share would pay the same
amount as the partner who is only selling a 2% share in the property.
3. Divide the fees so that they are proportionate to the share being
bought or sold (divided by the total percentage being bought and
sold).
Three looks the fairest to me. Does that sound reasonable, or is there
a better way?
(The partnership agreement simply says that the cost will be borne "by
the partnership".)
Mike
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Michael Leuty
Nottingham, UK
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