Using Mediation to Address Business Owners’ Predicament in Dissolving a Conventional Partnership
List of Authors
Norman Zakiyy
Keyword
Mediation, Business, Dissolution of Partnership, Malaysia
Abstract
Dissolving a conventional partnership affects the business relationship between the partners and their clients. However, the partners are still required to carry on with the management affairs of the partnership until it reaches a stage when all assets and debts are satisfactorily divided or settled. The inability to handle the situation will spark notable implications for the partners and clients that will result in prolonged litigation if an amicable settlement cannot be reached. Thus, this study examined the issues of the dissolution of partnerships and potential solutions by using mediation. The study utilised a doctrinal approach and analysed legal and non-legal sources relating to the effectiveness of mediation in resolving issues on the dissolution of partnerships. This study mainly finds that mediation offers a systematic way of resolving disputes arising during a partnership's dissolution. Mediation additionally provides a flexible and organised approach that assists partners in reaching a mutually agreeable solution, often without relying on costly and time-consuming litigation.