Situation Critical Thinking

Business Partnership Resolution

Introduction
Partnership laws are the rules and regulations that govern partnership businesses. These type of businesses are formed under the Partnership Act, which regulates their required formalities. It regulates some parameters that should be adopted for instances the number of members to be included in the enterprise. Formation of partnership has to be done in accordance with the state’s law stipulated under the Partnership Act. In its formation there some aspects that should be adhered to and they include; choosing business name, registering the name, negotiate and execute the partnership agreement deed, obtain any license required for the business, determination of the tax obligations to be adhered upon and finally open a bank account for the enterprise. In partnership, the corporation is defined as a principal and the partners are agents. It is in accordance with the Agency law. Partners have equal rights in which if there is contribution of finance required they have to do so equally without discrimination. They have the right to withdraw anytime they wish and in case of death they can succeed by their siblings. They have to be involved in the board of directors which makes the rules and regulation governing the enterprise. Agents have several duties to the principal in which it includes; duty of skill and care, the duty of good conduct, duty to keep and render account and duty to preserve confidential information.

Jack Corporation was an entity that was legally registered and in which it was so stable in the earlier years. The corporation begun as partnership entity in which Jack had equal shares of the enterprise with his two brothers, who are Dick and James. They operated the entity for a given period after which Jack decided to purchase their total shares, and the enterprise became his. After Jack died, his son Jack. Jr took over the management of the business with the help of his children Bill, Steve and Brad in which his daughters were not allowed to be involved in any way in the operation of the enterprise’s activities. After a given period, Jack.Jr passed away, and his elder son Bill took over the management office in which he was assisted to run the enterprise with his brothers Steve and Brad. They were the part of the board of directors in which they sat at every annual general meeting in structuring the rules and regulations to be used in running the enterprise. It was unfortunate they didn’t involve their sisters in the operation of their fathers company that seemed to be unfair to a certain extent. As we know, economic changes are a kind of dynamism which takes place unexpectedly, and no one can predict. In our case, the enterprise was affected by the economic dynamics in which the number of customers went on declining as years went by (Miller, 1984). This really affected its income and after a certain time it was in a point of closure whereby Steve one of Bill’s brother influenced Steve and other stakeholders to withdraw Bill has the chairman of the enterprise because he was performing his duties effectively and that why the corporation was falling. During the corporation meeting in which they had planned to overthrow manager a lot of strange things happened whereby Bill made them sign a paper without their knowledge in which it was based on the price of shares after which he started demanding for money for his shares from the corporation in which it could not afford to pay him unless it offered him some of its real estate property. It was a contradicting situation to Steve had the new manager of the firm because he was not aware of what Bill had done to them for his action to overthrow him from the office. It acted as a refuge for him because his brother had complicated the situation, and he had a lot to plot in order to keep the business running because it was on his mandate to ensure all was well (John, 2002).

Circumstances encountered.

Jack’s corporation was operated in the appropriate manner when he was alive because he followed partnership laws accordingly. It made his business achieve the set goals and objectives because every activity was carried out in the right manner. After his death, the enterprise was run appropriately, and there was no conflict evident between the shareholders. The business started troubling when Jack’s son passed away and left the business under the leadership of his sons in which Bill the elder son took over the ownership the corporation. Since he took over there were no achievements made, and this proves his leadership skills to be poor and it was right for the action taken by Steve to overthrow him. It was Steve’s right to take that action because it could not be wise for him to sit back and watch his father’s inheritance go to waste. Also, it was his right as a partner to ensure that the management was changed because if not by that the investment could have declined completely (Robert, 1988).
It was not appropriate for Bill to be emotional due to his brother’s deeds because he intended to better the welfare of the corporation for the interest of all but not for the self-interest. It was against the partnership laws by the actions of Bill to trick his partners to sign what they had not accepted. It is always appropriate for all stakeholders to agree on the share price in which it did not happen.
It was not appropriate to the action that were encouraged in the partnership by the sons of Jack in which they did not recognize their sisters in the operation of the business. It can be the reason as to why it started falling because it lacked modernization.
Bill’s requirements can be rejected under the bases that he had done things against the wish of the partnership stipulated in the Corporation. Due to this the partnership should not be dissolved because of his action instead he should be disqualified has a partner, and the business continues. It is an aspect that is stipulated by RMBCA.in, which any member an association should not be allowed to cause any disturbance in the operation of the business because this can cost the enterprise.
Steve should include his sisters on the board because they can assist him in running the enterprise. It is also a wise idea to involve them in operations of the business because their husbands will not withdraw from the partnership as they had claimed to sell their shares. They may also bring about new management strategies that can be incorporated in running the business in order to ensure it stands again.

Resolution

Steve is a general agent of the corporation, and he has the right to act appropriately on behalf of the principal. In this case Bill is not supposed to be paid for his shares at a price which was not agreed upon by the shareholders and instead he is supposed to be responsible for the days which he has not being going to work because it is against the partnership laws. As per partnership laws, each partner is supposed to be ready to carry out his work responsibly without any delay unless specified.

Conclusion

Partnership laws allow free expression of ideas and opinions in which they can be adopted to better the activities of the enterprise. All partners have equal rights, and they should adhere to the obligations that they are entitled to in order to achieve their common goal that is making a profit. Family business structured under partnership form of business does not allow exclusion of partners powers according to their age in the sense that Bill because he was the eldest in the family he was supposed to mistreat others in the corporation. It is because they are entitled to equity in the partnership, and there is no superiority that should be observed in the enterprise. Steve should ensure that the business is operating and every challenge faced is handled in the appropriate manner and he should not let anyone influence his ruling has the manager of the business (Warren, 2002). As we know the family business are bound to be continued because it should help all generations in the lineage.

References

FDsys - Browse Code of Federal Regulations (Annual Edition). (n.d.). Retrieved April 24, 2015, from http://www.access.gpo.gov/nara/cfr/cfr-table-search.html.
Miller, R. (1984). International Business Machines Corp, 162(3), 241-255.
Robert .J. (1988). Moral Mazes: The World of Corporate Managers. New York: Oxford University Press.
John .S. (2002). An Enron Unit Chief Warned, and Was Rebuffed. New York Times.
Warren .B. (2002). A Corporate Fear of Too Much Truth. New York Times.
Milton .F. John .M. & Rodgers .T. J. Rethinking the Social Responsibility of Business
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