Gain An Advocate In Shareholder & Partnership Disputes
Even the best-planned businesses can be taken down by unresolved disputes among shareholders and partners. It is crucial to resolve discord appropriately and efficiently in order to protect the legal and financial interests of the business. In the greater Detroit area, this means seeking out the services of Brown Borkowski & Morrow.
Our dedicated business law and commercial litigation attorneys have been resolving shareholder and partnership disputes for our clients since our Farmington Hills firm opened. We represent the interests of small and medium-sized businesses, providing them with the solutions they need to keep their businesses operating successfully.
We resolve a wide variety of partnership and shareholder disputes, including those involving:
- Disagreements about the direction of the business
- Allegations of fraud made by shareholders or partners
- Breach of fiduciary duty claims
- Alleged oppression of minority shareholders
- Underperformance claims brought by shareholders
Our team is prepared to protect your interests and pursue the best possible outcome as efficiently as possible. Whether this means negotiating a settlement or proceeding with litigation, we have the tools, knowledge and resources necessary to prevail.
How To Handle A Dispute With A Business Partner
Partnerships can fail for a multitude of reasons. Perhaps the partners did not have a strong business plan and cannot agree on how to run the business. One of the most important reasons for failure, from a legal standpoint, is that the partners failed to have a written partnership agreement in place.
Typically, a partnership agreement is drawn up by a lawyer at the beginning of the venture and details everything from each partner’s initial stake and percentage ownership to how responsibilities are divided and even how disagreements will be handled.
Without a partnership agreement that provides guidelines for business decisions and operations, partners can often find themselves at odds, putting the entire venture in danger.
Changes in the partnership agreement
If you and your business partner have a partnership agreement in place, but find yourself in a situation where your partner no longer wants to participate in the venture or would like to step into a position of less responsibility, there are options.
You can change the weighting of the partnership agreement so that you now have a majority share while your partner remains involved, but to a lesser extent.
Another option is to buy out your partner altogether and assume full ownership of the business.
Dissolving the partnership
In the instance that both you and your partner no longer want to participate in the venture, and you have a partnership agreement, it may be time to examine the section of the agreement that details the dissolution plan.
The plan should give clear instructions on terminating leases, paying off loans, selling property, and distributing any remaining assets, capital, or debt to the partners.
No partnership agreement
If you do not have a partnership agreement, any changes in the management of the company, or the dissolution process, can become much more complicated. If you and your partner are parting ways amicably it may be easy to work out the terms. However, if there is ill will that caused the split, you may need to consider mediation or even pursuit of the case in court.
If you find yourself in a disagreement with your business partner, it is important to know your options and rights. For guidance on this issue, contact our experienced business law attorneys at CALL. We will help you every step of the way.
Strong Yet Civil
At Brown Borkowski & Morrow, we believe that everyone deserves to be treated with respect, and this applies to the legal realm. We handle all business law cases with civility and respect, which reduces the likelihood of protracted litigation. This, in turn, protects the bottom line of our business clients.