Shareholder And Business Partnership Disputes
Partnership and shareholder disputes frequently involve disputes over which partner has authority to make business decisions. When shareholder disputes get out of control and cannot be resolved, it may be essential to liquidate the business. Shareholders play an important part in the success of a business, as well as in how the business is run. Because so much is on the line, shareholder disputes can be the most contentious form of business disputes and can lead to protracted and costly litigation. As a partner or shareholder in a business, there is no way to avoid disputes altogether. External business disputes are frequent causes of litigation, but so are internal disputes.
A single dispute can get in the way of your success, so make sure you do everything you can to reach a resolution that works. The mediator does not decide who is right or force the parties into an agreement, but simply facilitates the resolution and attempts to make a fair discussion When you want to keep the dispute inside the company, a negotiated settlement agreement or confidential arbitration resolution may be appropriate. Arbitration can be an effective means of dispute resolution, especially for parties who desire a fast resolution on a complex issue.
Business Disputes Between Shareholders And Partners
Disputes are bad for business and never more so than when a business is in dispute with itself. A business dispute can disrupt the day-to-day operations of your business. Businesses can start off with the best of relationships and intentions, but can over time, decay into disputes from the minor to the major. Despite the best of intentions at the beginning of a business relationship, things often change. At the beginning of a business, the parties involved are most often in agreement when it comes to operations, finances and other important business issues. During the course and scope of any business, disputes will arise that can affect operations and, ultimately, the bottom line.
Minority And Majority Shareholders In Shareholder Rights Litigation
Shareholder rights in the relationship between minority and majority shareholders and between shareholders and the corporation in which the shares are owned is governed by the shareholders agreement. The controlling shareholders of a corporation may not manipulate the corporation for their own self-interest, without regard to the interests of the other shareholders or corporate creditors. Perhaps you are the victim of minority shareholder oppression, or you have been accused of breaching your fiduciary duty as a majority shareholder. An oppressed shareholder is someone who owns stock in a closely held company who is treated unfairly by the majority or controlling shareholders. For reasons real or imagined, the majority shareholders want the minority shareholder to leave. A shareholder agreement is a specialized contract among shareholders of a private corporation.
Ambiguous Contract Terms And Agreements
The business relationship may have run into problems resulting in confusion or disagreement about the roles or expectations defined in contract agreements. When one party breaches, or fails to fulfill its terms under a contract, business litigation can ensue. Many existing contracts may be unclear, outdated, unworkable, or subject to multiple interpretations. You want to make sure the rules, terms, and agreements are outlined in advance. Because each contract must be tailored specifically to the needs of the parties, there are infinite possibilities for drafting a contract. Contract disputes can quickly arise from vague, contradictory or misleading contract terms.
An Experienced Business And Commercial Litigation Attorney
The best advice is to get legal advice as soon as possible. No matter how your rights are derived, you must actively work to protect yourself and your investment. As soon as you are aware of growing dissatisfaction or a dispute that could deepen, you should take steps to protect yourself. Delay in obtaining legal and financial advice could have a very significant impact on the eventual result. The manner in which a business dispute is resolved can have an enormous impact on your business going forward. As with most business litigation matters, your contract dispute can be resolved in a less costly and more time-efficient manner when you work with a skilled business attorney. Call the Curry Law Group today!