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Shareholder & Partnership Disputes

Shareholder and partnership disputes often come out of something that’s originally so joyous. As a result, they can be particularly heartbreaking and problematic. If you’re only now just dealing with this kind of problem, then you might be stunned that the situation has even come to this. Few people ever suspect that their businesses are going to run into debates, because of how they’re founded.

Types Of Shareholder Disputes

Business professionals as well as family members enter into business ventures on a regular basis. At the businesses’ creation, partners typically enter into shareholder or partnership agreements regarding buy-ins, buy-outs, operations, finance, and other relevant matters. At inception, the parties involved only have one goal in mind: working hard to ensure growth for their business.

However, as time goes by and challenges begin to strain the business, one of the biggest threats to the stability of a business is disagreements within management and/or among shareholders. These disputes can be costly in many ways, including those far more important than the immediate financial health of the business, and can emerge in a variety of contexts, including:

  • Breach of fiduciary duty
  • Shareholder disputes against managers
  • Minority owner rights
  • Corporate deadlock disputes
  • Executive compensation
  • Buyout agreements
  • Buyout rights
  • Self-dealing
  • Shareholder appraisal rights

Depending on your particular situation, these kinds of disputes can arise from a number of different causes. A breach of fiduciary duty might come about when someone doesn’t act in the best interest of someone that they are trusted to act on the behalf of. Considering that there isn’t any need to prove fraudulent or criminal intent in these cases, they’ve become fairly common even in circumstances where people initially believed that they were working with trustworthy business partners who would constantly do whatever was best for one another.

Shareholder Disputes Lawyer Miami

On the other hand, some of these disputes might not really be much of disputes at all. Someone may simply wish to leave a partnership and they could want to have a legal professional there at all times to help them put together their exit strategy. This is a very intelligent move since it can help to dramatically reduce the risk that something goes wrong. You’ll want to work with a Miami area shareholder attorney, who is able to navigate not only the sometimes rocky world of business negotiation.

In a worst-case scenario, more serious disputes can end up shaking an organization to its core. Whenever that happens, you’re going to want to have rock-solid legal help that will be there for you so that you can weather the storm and eventually move forward in whatever industry your company serves.

Naturally, it’s always best to do everything in your power to ensure that these kinds of disputes don’t happen in the first place. If there’s a way to resolve them peacefully, then that’s always going to be the best way to do things. That being said, business doesn’t always work like that in the real world so you may have to eventually avail yourself of the services of a legal professional who can help to sort out this potentially messy issue.

Miami Shareholder & Partnership Disputes & Dissolutions

These disputes can lead to demoralization within the organization, stifled growth, and waste of company assets. Simply put, these internal disputes, whether trivial or substantial, can inhibit a business from reaching its full potential. Draining litigation can take its toll on the company- both financially and emotionally. Worst-case, prolonged court battles can drain a company of all of its assets and render it insolvent.

Do not allow an internal dispute among partners or shareholders to wrongfully deprive you of all of your investments in the company you’ve worked so hard to build. Allow an experienced attorney to protect your rights, and assist you in settling your shareholder or partnership dispute in a way that fits your needs.

Find Your Ideal Litigation Attorney At Trembly Law

At the Trembly Law Firm, we’ve done our best to ensure that our team of legal professionals is there for anyone who might be dealing with serious situations right when they need us the most. We invite those who’ve run into these sorts of problems to read more about potential resolutions.

Use our convenient online contact form today to learn more about how our services can benefit you whenever you run into these kinds of unfortunate disagreements.  While it might seem like you’re being forced to deal with a fairly complex issue at the moment, making sure to work with professional attorneys who have the experience to tackle these kinds of problems will make the problem much less steep.

No matter how seemingly flawless a business venture may begin, disputes between shareholders and partners often come up. This is true even when the business people involved are friends or family members. As a way to minimize disputes, and also provide guidance on how the business functions, businesses create operating agreements (or “shareholder agreements”) which cover as many aspects of the business as possible. Every business, regardless of management style or industry, should develop an operating agreement.

Even with a well-developed operating agreement, however, disputes are still likely to arise at one point or another. The reason for this is simply because of the massive level of complexity involved in running a business. When you operate a business, there are unseen problems, contingencies, and all sorts of things which can suddenly happen. Though disputes may be inevitable, there is no question that they can cut severely into the productivity, morale and financial health of a company. When disputes arise, you need to partner with professionals who are capable of resolving disputes in a fast and efficient manner.

Let’s first look at a few of the many types of disputes which can arise.

The Many Types of Disputes

  • Breach of fiduciary duty
  • Shareholder appraisal rights
  • Self-dealing
  • Buyout rights
  • Buyout agreements
  • Compensation issues
  • Corporate deadlock disputes
  • Minority owner rights
  • Management practices
  • Debt acquisition
  • Shareholder disputes against managers
  • Shareholder disputes against owners

The Trembly Law Firm Focuses on Prevention

Although it is not feasible to completely eliminate the possibility of disputes, it is feasible to minimize their occurrence. And the best prevention strategy is to create an effective, reasonable operating agreement. In many cases, businesses suffer from costly and energy-consuming disputes simply because they failed to implement a workable operating agreement. Not all disputes are preventable, but many can be prevented with a suitable agreement. The key thing is to sit down with a qualified attorney and discuss your goals, practices and structure in detail. Remember, even the smallest detail can lead to a dispute, and so being thorough is of the utmost importance.

Resolve Disputes in a Quick & Cost-Effective Manner

At the Trembly Law Firm, we take the time to learn about the most intricate details of your situation. We use this information to chart the best possible course toward resolving disputes in the quickest and most cost-effective manner. Make no mistake, shareholder and partnership disputes can lead to extremely high costs for your business, in terms of fees, lower morale, reduced productivity, and so forth. We understand the importance of fixing a dented situation and returning your business back to health.

Contact a South Miami Law Firm for More Information

As with so many things, quality is all important when it comes to effectively preventing, and resolving, business disputes between shareholders and partners. At the Trembly Law Firm, we have a team of professionals who can assist in dispute prevention and resolution. Call us today to utilize our expertise in both of these critical areas. The future of your business depends ultimately on the people you choose you represent it.

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Frequently Asked Questions

South Florida Business Attorney Brett Trembly addresses commonly asked business law questions in his Video of the Month series.  If you have any questions for us, or if you need immediate legal assistance, please contact us today.

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