Understanding Shareholder and Partnership Disputes
With changing times, there are lot of challenges that appear to be a threat to business's stability, management system and consensus between the shareholders. Partnership Disputes and Shareholder Disputes often leave you worrying as a lot rides on your business. There can be internal and external disputes; however the internal dispute can be very expensive and devastating. If the disputes end up being bitter among owners, they can demoralize the organization, suppress its growth, and use up the company's assets, costing it emotionally and financially. Worst case scenario, prolonged court battles end up draining the company of all of its assets and can turn it bankrupt.
Along with experienced legal counsel, a good shareholder agreement can go a long way towards preventing disputes from arising in the first place and also in keeping disputes from escalating into extended court battles that no one really wins in the end.
Issues Arousing Contention between Shareholders/ Partners
- Buy out or purchase of shares
- Conflict of interest
- Misappropriation of funds
- Misuse of company/ Partnership assets
- Valuation of shares
- Hiring of staff
- Financial structure
- Change in leadership or management
- Inability of the partners to cooperate
- Unfair ownership share of the partnership
Remedies Obtained
There are various court orders and remedies that you can obtain like monetary damages, sale of assets, buy out/ sale of business ownership among co-owners, tracing of assets, entity dissolution, control of the business, appointment of a receiver and much more.
