Hi there. It is not clear what you mean by ‘stock’. You could be referring to shares or other securities in the company, or to the physical stock that is traded as part of the business. Below is some general information that may be relevant to either of these two situations.

Shares in the company

If the business is incorporated and you are registered as a shareholder of the company, you are the legal owner of those shares and, subject to the rules of the company constitution, you can sell those shares to another shareholder or third party. Depending on the constitution, you may also be able to sell those shares back to the company as part of a share buy-back scheme.

It is not clear what you mean by ‘our’ stock. If the shares are in your name only, then the shares can only be sold with your consent. If someone else is selling your shares without your authorisation, then you may have a civil claim against them for breaching your proprietary rights as a shareholder.

If the shares are held jointly with your business partner, you should refer to the company constitution, which will most likely specify the process for selling jointly held shares.

Physical stock of business

If your business is incorporated, the trading stock is most likely owned by the company, rather than you or your ex business partner in a personal capacity. This means that, if the business is to be wound up, the stock will need to be distributed pursuant to Australian corporations law. You should consult a lawyer for further information about this process.

If the business is not incorporated, then the trading stock will be owned by you and/or your ex business partner in your personal capacity. Precisely who owns it will depend on how it came into the business (who purchased or created it, who paid for it, etc). If you are the original owner of the stock, you may have a legal claim against your ex business partner if she has sold it without your authorisation.

Your rights will also be affected by any oral or written agreement that was reached between you and your ex business partner. If the agreement about splitting the stock was sufficiently certain and you both intended the agreement to be legally binding, the law will usually require the parties to follow through with their promises. If your ex business partner is not abiding by the agreement, you may have a legal claim against her to enforce the agreement or recover your share of the stock.

Suggested way forward

It sounds like you may have a legal claim against your ex business partner. You can pursue mediation through your nearest Dispute Resolution Centre run by the Queensland Government (www.qld.gov.au/law), but mediation requires the consent of both parties. If your ex business partner does not want to participate in mediation, you may need to resort to formal legal proceedings. You would benefit from speaking with a lawyer who can advise you of your legal rights and the best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.