BROTHERS AS PARTNERS

Everybody's Uncle,


My husband and his brothers are in business together. Brother #1 is working less and taking out more money than brother #2 and #3. He is making up expense accounts for himself that are ridiculous and unfair. What is the safest way to go about terminating "brother #1" and keeping the businesses in line?

Thank you
Wife #3
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Dear Wife #3

Unless you are a principal in the business, the brothers should settle the matter among themselves. Wives usually hear a husband-weighted version of the story. There is both a business and a family on the table. This is one of those cases where you could kill two good birds with one bad stone.

There is no "safe way" to terminate brother #1. He could be capable of anything from physical violence, to a negotiated peace treaty, to a set of by-laws, a buy-out, new "stock" split, or an all-consuming war.

Try to consider #1's point of view, weigh in his emotional side, estimate his counters, and prepare dispassionate responses. The ramifications of your next move should be given serious thought with legal overview.

When sibling tempers flair, logic goes out the window and a "fight to the death often" often ensues.

Rather than try to dump #1, have an independent party examine procedures. It is easier to get a professional in than to get a brother out. After a professional review of present procedures, a set of guidelines is established for all parties. It is easier to accept uniform standards than, "Hit the Road Jack."

The subjectivity and objectivity of all parties must be weighed. The "executive" thinks his brainpower deserves more. The "salesman" believes he needs a greater expense account. The "producer" feels the other two would not exist without HIS product. And so it goes.

Partners tend to assume that profits have to be equally split. In many family partnerships, productivity is not exactly balanced. A formula for reasonable compensation is rarely considered and too complex for this forum.

If you E-mail a phone number and times to call, I will not publish your number and will call as time allows.

Here if you need me,

Everybody's Uncle