Every company needs capital to run. Shareholders and partners are usually where those funds come from. Whether the partners work in the same office to get the job done, or they just provided operating funds, they have a say in how the company runs.
Unfortunately, partners or shareholders can disagree on the best way to manage the company they’ve invested in. Often these disputes are minor and can be addressed through the normal course of business. When they can’t, and the disagreement escalates, having an outside party step in can be necessary to ensure an equitable resolution. That’s where the Business Law Attorneys of Jordan Law can help.
How We Resolve Shareholder and Partner Disputes?
There are several paths to resolving a dispute between partners and shareholders of a business. Sometimes it’s as simple as letting us look at the contract, and letting you know your options. Other times, more complex solutions are required. Some of those options are:
- Arbitration – By letting an arbitrator sit down with both parties and look at the evidence provided, disputes can be fully addressed. Arbitration is typically final and the arbitrator’s decision is final and is enforceable through the courts.
- Mediation – During Mediation both parties sit down and work with an independent third-party to air their grievances, discuss their concerns, and give voice to the outcome they’d prefer. Agreements made during mediation are voluntary and do not have the power of law behind them, but contracts may be written to bind those agreements.
- Litigation – This is the most complex way to address the disputes the partners and shareholders may have. Basically, it means going through a lawsuit and proceeding through the court system to resolve the issue. While decisions made through litigation are binding and have the force of law, it is usually the last resort between disputing parties.
Resolving business disputes is the best way to keep your business running and keep it profitable. No matter how many parties are involved, if you want to keep your company running you need to do your best to keep them all (and yourself) happy with the way it’s being run. Having a good lawyer by your side and defending your interests is the best way to keep moving forward.