Creating and operating a business with multiple owners can be difficult. Occasionally, different owners want to take the business in divergent paths and, when conflicts arise, have difficulty resolving their differences amicably. To further complicate the issue, businesses with multiple owners seldom have an agreed-upon plan in place for what to do if they choose to part ways.
Given that all partners and shareholders have some financial stake in the business, disagreements regarding operations, finances, and governance (or other essential aspects of running the business) can become more volatile and complex than might be experienced otherwise.
The best way for a company to protect itself from these potential disputes is to create a clear and comprehensive shareholder agreement, one that is agreed upon by all those involved, before launching the business in the first place. A qualified business attorney can often help guide and draft these agreements, ensuring that all of the pertinent bases are covered and all parties are equally represented.
Unfortunately, this doesn’t always happen, and disputes eventually arise that require outside litigation.
Partners in a business have legally binding fiduciary duties to one another, and when, as unfortunately happens frequently, these requirements are not met, conflicts arise that can potentially endanger the growth, profits, and even reputation, of a shared business.
Disputes typically arise when one or more partner fails to meet their obligations to these duties to the remaining partner or partners. This can be anything from participating in activities that are in direct competition to the business, to unethical or irresponsible handling of corporate property or funds.
Shareholder and Partnership disputes can seriously damage businesses, especially when they waste valuable resources, lose focus on day-to-day operations, or create an environment of uncertainty that can negatively impact both staff and customers. These disputes can be highly contentious and quickly derail hard-won success and profitability.
While some corporate disputes and disagreements can be dealt with amicably (and without formal litigation), often, due to the complexity of the individual situation and how local business law affects it, it’s necessary to involve experienced legal professionals and seek a courtroom solution.
Strategically Protecting Clients’ Interests
The attorneys of Gray Becker understand the toll these disputes take on the company and the individuals involved and possess both the litigation experience and the financial acumen necessary to resolve these disputes swiftly and in a cost-effective manner that protects the client’s interests.
Drawing On Extensive Legal And Industry-Specific Knowledge
Gray & Becker, P.C. has successfully represented clients in a wide variety of partnership and shareholder dispute cases. From simple business dissolutions (sometimes referred to as “business divorces”) between partners to very complex suits involving multiple owners or shareholders, determining control and binding responsibilities relating to large family-owned businesses.
Clients also benefit from the firm’s experience representing businesses in a broad range of industries and business relationships.
The attorneys have an established record of success handling shareholder and partnership disputes such as:
Breach of fiduciary duty
Conflict of interest issues
Rights of minority shareholders
Business succession disputes
Contact Gray & Becker, P.C. for More Information
To arrange a consultation with an Austin partnership or shareholder dispute lawyer, contact Gray & Becker, P.C. online. With offices in Austin near the courthouse, our firm serves clients throughout Central Texas.
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