Australian Lawyers Weekly
Justice Michael Elkaim of the NSW Supreme Court said the expulsion, found to be a “forced and absolute divorce from the firm”, was in breach of the partnership deed as he interpreted it.
Manager partner Juan Martinez died before the matter could be resolved, but the court said it could continue in his absence.
Under the firm’s structure, its partners are either fixed draw partners (FDR) or hold the more lucrative position of capital partner.
To expel a capital partner, an “extraordinary resolution” must be passed by at least 80 per cent of the capital partners. The partner is not permitted to remain at the firm as an FDR or an employee.
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