Being in business with partners and shareholders is not for the weak of heart. Disputes can turn ugly and sometimes a resolution cannot be agreed upon. When this happens, do not hesitate to contact an experienced business litigation attorney to help get your company through the conflict.
It is important to address shareholder and partnership issues as soon as they arise so that these conflicts do not have a negative impact on the company as a whole. Here are a few of the most common disputes that occur among partnerships and shareholders that a business may have to deal with at some point:
- Breach of contract — If someone is accused of breaching a contract and another may argue that the contract was not breached or that is was the other party who breached the contract, it is definitely time to get a lawyer in involved in the situation.
- Deadlocks among management — Management is unable to make a decision that is agreeable to all involved; therefore, litigation is needed to break the gridlock.
- Succession planning — What happens when someone wants out of the business. Is the business set up correctly for a seamless succession? These issues are common when it is a family-owned business and can get very complicated.
- Buy-sell agreements — Any time a business has to buy or sell assets, there can be disagreements among partnerships and shareholders. The buying or selling of assets is one of the most common reasons for shareholders and partnerships to argue about.
- Violation of corporate regulations — Business litigation attorneys may be required to intervene if any members of the partnership or shareholders’ behavior are in violation of the company bylaws.
- Compensation for Executives — How the executives and key management personnel are compensated is commonly a cause for disagreement between partners and shareholders.
How are Partnership and Shareholder Disputes Resolved?
It is important to note that many disputes between partnerships and shareholders cannot be settled without going to court. That is because there may be legal implications behind each decision that would be better handled with the help of a litigation attorney. Your lawyer, like a business dispute lawyer in Charlottesville, VA, can first attempt to settle the issue without going to court by acting as a mediator between the parties. However, a complex shareholder and partnership agreement will require the assistance of an experienced lawyer who understands the legal ramifications of each side of the argument.
Resolving the dispute in an expeditious manner will help minimize the effect on the business, allowing it to move forward in a more seamless manner. The sooner you can reach out to a business litigation attorney and ask for assistance in addressing the dispute, the easier it will be to resolve and for the business to move on.
Contact a Business Litigation Attorney
Enlisting the assistance of an experienced business litigation attorney as soon as disputes arise between partners and shareholders can help businesses run more smoothly, without lingering on differences and working with a common goal to make the business a success.
Thanks to Dale Jensen PLC for their insight into business law.