Whenever there are multiple people involved in a business it is inevitable that a situation will arise that leads to an ideological difference. Whether it is a branding decision, terms of incorporation, or a core change in business practices, these conflicts will rise and fall over the course of any business’ lifetime. The two most common types of dispute in high-level business transactions are partnership disputes and shareholder disputes.
Partnership and shareholder disputes are two broad categories of conflict that arise within a business. What partnership and shareholder disputes have in common is their basic premise: an individual with a personal and potentially controlling stake in a company is in conflict with someone in charge of the company’s operation.
Partnership disputes are the more even-footed of these disputes as a partner with either have a plurality in company stock or potentially be a high-ranking or founding member of the company. By contrast, shareholder disputes can be more detached, though no less fervent, often raised by an investor who is unhappy with the performance of their investment in a company.
There are a number of ways to resolve partnership and shareholder disputes. Common to both forms of dispute is the option for arbitration or mediation. This is a voluntary form of problem-solving that allows individuals to sit down and discuss their issues in front of an impartial mediator.
In more severe cases, there may be a litigatory solution. Litigation may occur over some impropriety such as fraud or deceptive practices, or it may simply be a solution when voluntary pathways have field or are refused.
The best attorney to help with partnership or shareholder disputes is a business law attorney. While some disputes may end up in court before a judge, many of these issues will be resolved by carefully examining and interpreting the articles of incorporation, the partnership agreement, or the shareholder agreement. An experienced business law attorney can find solutions that don’t involve a lengthy court procedure, whether that is a freeze-out merger, a buyout, or other non-litigatory solution.