“Many founders believe that their partner is the backbone of the business. But the reality is, when the very person you trust becomes the source of destruction, the business can collapse in an instant. A partner who abuses power, hides information, or makes decisions without consent can drag the company straight into the ground. Sometimes, it’s not outside competitors that destroy you, but the people within.
If you have a partner, don’t just rely on trust — make sure you have systems and clear documents in place. Don’t let trust become the weapon that turns against you.”
When Your Partner Steals Your Client, the Law Can Step In
“Imagine building your business for years, nurturing clients, protecting your reputation. Then suddenly, your own partner quietly takes your client to start a new business. That’s not just betrayal — that’s a breach of trust. Under the law, a partner cannot seize company opportunities for personal gain. The case of Ali v Muthu [1967] (not the real names) proved this principle.
Don’t ever think this is ‘normal’ in business. You have the right to fight back. If you stay silent, your business could slowly crumble without you realizing it.”
Company Funds Lost, Everyone Pays the Price
“Many people think if a partner mishandles company money, only that partner is liable. The truth is, no. In a partnership, all partners can be held responsible. If company funds disappear because of one person, the others can still be sued together.
It’s a bitter risk, but this is the reality of entering a partnership without proper controls. Don’t wait until the money is gone to regret it. Control the cash flow from the start, ensure internal audits are in place, and never let all the power rest in just one person’s hands.”
Leaving a Partnership Isn’t Like Leaving a WhatsApp Group
“Many people think if a partner causes problems, it’s easy to just walk away from the partnership. The truth is, leaving without a clear agreement can turn into a massive war. From disputes over assets, to clients, even to the company’s reputation — everything can become a battleground.
Some founders end up losing all their money not because they lost to competitors, but because they fought against their own former partners. Yes, you can leave, but without a written ‘exit clause,’ it can leave scars that last for years. Plan ahead before things get ugly.”
When a Partner Breaks Trust, the Court Can Back You Up
“In a partnership, trust isn’t optional – it’s a duty. Every partner has a fiduciary duty: to protect the company’s interest, not their own. If a partner breaches that duty, the law can back you up.
The Partnership Act 1961 clearly sets out this responsibility, and the case of Sarah v Aina (not real names) [1965] proved that a partner can be held liable for the actions of another. Don’t be afraid to assert your rights when it’s your own partner causing the downfall.”
Verbal Promises Aren’t Enough, Documents Are Your Shield
“The biggest mistake founders make: trusting verbal promises. When everyone is still friendly, the promises sound sweet. But once the business grows, money comes in, and stakes get higher — people can change. That’s when you realize the true value of black-and-white agreements.
A Partnership Agreement or Shareholders’ Agreement is not just paper — it’s your shield when conflict arises. It can serve as evidence, as protection, and as the deciding factor when things get messy. If you truly care about your business, prepare your umbrella before the storm hits.”
Partner: Your Greatest Asset or Your Biggest Liability?
“A partner can be your most valuable asset — helping you build the business, sharing risks, and fighting alongside you. But a partner can also be your biggest liability — stealing clients, mishandling funds, or stabbing you in the back.
Many small businesses collapse not because of competitors, but because of their own partners. The truth is, there’s a way to protect yourself: legal strategy. If you’re worried your business might fall apart because of your partner, don’t wait until it’s too late. The legal steps you take today could save your business tomorrow.”
