A business partnership can be likened to a marriage. It is legally binding, and it relies upon the strengths that each partner brings to the union, as well as the cooperation of the partners and their willingness to support one another’s goals and interests. With different personalities involved, there is always the possibility that a dispute will arise. Partner and shareholder disputes may come about due to differences in opinion or management styles, or as a result of negligence or intentional wrongdoing, such as fraud or a breach of fiduciary duty. In any such scenario, a partnership dispute lawyer should be prepared to represent your interests and legal rights as carved out by the partnership.
Generally, a partnership agreement compels the partners to discuss, negotiate, vote on and resolve important business or management decisions concerning the business venture. The partners’ intentions and respective rights, duties, responsibilities and obligations should be memorialized in writing, in the form of the partnership agreement. Partnership agreements should address how the partnership will allocate profits and losses, how much capital contributions each partner makes, how the day to day management and affairs of the business will be managed, the process of adding a new partner, the process of dissolving or winding down the partnership, what happens when a partner is dissociated, dies, or leaves the venture.
We can address shareholder and partnership disputes involving:
- Corporate governance;
- Breaches of fiduciary duty;
- Bad faith practices;
- Minority shareholder oppression;
- Self-dealing; and
- Violations of non-compete agreements.