Wednesday 18 March 2015

How can you handle a business partnership and shareholder dispute?

If you experience a shareholder dispute between yourself and a business partner, don't take it lightly. A seemingly minor conflict between shareholders can easily expand into a wide chasm that drives partners further apart than either ever expected. Lean on the skills of an experienced attorney who can help those with closely held equity interests in a business resolve their dispute.

Ideally, preventative steps are taken during the formation of a business to provide anticipatory dispute resolution procedures and exit strategies. These are meant to prevent future conflicts like shareholder disputes between business partners. If these stipulations are not in your company's original agreements, it is possible to amend the language with the cooperation of your business partner and the assistance of your corporate attorney. However, disputes can still arise and when they become unmanageable, you'll need the assistance of your attorney.

A corporate attorney will work with you to facilitate your transition through each stage of a partnership dispute. It is possible to disengage partners from the company through dispute resolutions like deadlocked resolutions, dissolution, partnership litigation and fair value buy out remedies. Yet there is also the potential for the company, its shareholders, partners and other owners to be fully preserved with the assistance of a corporate attorney.

If deemed appropriate, your conflict can take the non-litigation dispute resolution route. This practice can apply governance structures, appraisal rights and buy-out procedures. It can be appropriate to generate agreements that address key issues like intellectual property protection, taxation qualms and disagreements over executive compensation. Some law firms even have practices devoted specifically to "business partners and shareholders disputes" for a full fledged resource that prevents disputes between partners from spiraling out of control.

Every business owner should be aware that litigating shareholder disputes involves several complex laws that set the groundwork for the governance of partnership disputes. A savvy legal will dig deeply into the intricacies of each individual shareholder dispute from every possible angle.

Experienced corporate attorneys will look into the liability of your partner, officers and directors. He'll also research for potential breaches of contract and fiduciary duty. Above all, your corporate attorney will develop and implement tactical legal strategies, including litigation, to benefit your interest and remedy the dispute. From litigation to mediation, arbitration and valuation procedures, your attorney will serve a critical role in resolving your shareholder dispute.

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