Businesses with two or more owners inevitably run into disagreements about how to operate the company. Some of these disagreements are minor, while others may impact the overall direction of the organization.
Most partnership and shareholder disputes can be resolved between the owners, but when the parties are at a standstill, it can lead to management challenges and lost opportunities.
If partners or shareholders are unable to come to an acceptable arrangement, litigation may be the only way to settle their differences.
I have in-depth knowledge of shareholder issues as well as other types of business disputes. My firm is business oriented, and I understand that some partnership and shareholder disputes can be settled amicably while others are intractable.
I put my experience to work in determining the value of the dispute and crafting the most practical and cost-effective solution. This gives my clients the assurance that my approach is well grounded from both a business and legal standpoint. The end result is a goal-oriented solution that accounts for all factors and guides you through the process with your business objectives in mind.
Common Partnership and Shareholder Disputes
Partnership and shareholder disputes can take many forms involving numerous complexities. These disagreements often have collateral issues involving contracts, customers, and non-compete agreements.
Some of the typical reasons for disputes among shareholders include:
Breach of Contract: Contract disputes often arise when one or more members of the management team are in violation of the terms of their contract.
Violation of Company Bylaws: If partners, shareholders or managers fail to follow corporate guidelines, it can have an adverse effect on the overall operation of the organization.
Management Deadlocks: When management cannot agree on key decisions that affect the future of the company, the dispute must be resolved for the company to move forward.
Buy-Sell Agreements: When disagreements arise over the sale of corporate assets or purchase of new assets, shareholders have a strong interest in ensuring that these transactions enhance the value of the company.
Management Compensation: Partners and shareholders often disagree on the amount and benefits included in executive compensation packages.
Business Succession Planning: In family owned or closely held businesses, disputes often come up over who will succeed the principal founder when he or she retires or passes away.
Emergency Partnership and Shareholder Relief
There are instances when emergency relief is necessary to prevent a party from taking a certain harmful action. My skilled commercial and civil litigation team assists clients with restraining orders and injunctive relief and other types of emergency litigation when necessary.
For experienced representation with all types of partnership and shareholder disputes in Illinois, contact me today for a free case evaluation on your case.