Resolving Internal Conflicts Between Business Owners And Partners
The sooner you face disputes between partners or those involving shareholders, the more likely it is that you can resolve them without resorting to lawsuits. However, even in the early stages of discord in the business, it can be advantageous to work with trial lawyers who can position you for success in negotiations or other methods of mending fences.
At Robertson & Associates, we bring extensive litigation experience to the table in support of our business clients with much at stake. When disputes escalate, we guide clients through alternative dispute resolution and also represent them in traditional litigation in state and federal courts throughout North Carolina.
Work With Experienced Advocates To Resolve Partnership Or Shareholder Disputes
As business law attorneys who have facilitated many business formation processes and have litigated disputes among co-owners, we understand the dynamics that lead to friction. We recognize that sometimes opposing sides back themselves into their respective corners and lose sight of the value of compromise and collaboration.
You may believe that reconciliation of opposing viewpoints is impossible in your partnership or shareholder dispute. We are confident that you will benefit from discussing the situation with our business law attorneys before taking drastic action of any kind. Our years of experience have prepared us to help you address any challenge, including:
- Allegations of fraud, embezzlement or self-dealing by one or more stakeholders
- Clashing management styles
- Differing visions for operating and growing the company
- Disagreements about money
- Apparent squeeze-out plays are seemingly designed to oust one shareholder
- Business troubles exacerbated by personal problems, such as a divorce, anxiety or depression, addiction, or legal troubles
Map The Way Forward Through Any Business Dispute
We can help you get to the heart of the dispute as we triage the conflicts that you are struggling with. Is a disagreement worth litigating or can a peaceful resolution save the day for both sides as well as the business as a whole? Is a negotiated buyout the only way forward? Can a partnership be salvaged or should you seek a “business divorce”? Dissolving the company and splitting the assets and liabilities may be a last resort solution.
Frequently Asked Questions About Partnership And Shareholder Disputes
We know disputes between partners or shareholders create stress and uncertainty. We will answer common questions plainly and show you practical next steps.
Can a majority shareholder be sued for “squeezing out” a minority owner?
Yes. North Carolina law protects minority shareholders from oppressive conduct. If the majority owners act to frustrate the minority owner’s reasonable expectations, such as firing them from employment without cause, excluding them from management or denying access to corporate records, the minority owner may have grounds for a lawsuit.
How is a business valued during a partnership buyout or “business divorce”?
Valuation often becomes the most contested part of a buyout. Parties will bring in forensic accountants who examine assets, revenue, contracts, liabilities and goodwill to form an opinion of value.
Valuation also depends on the method used. Common approaches include fair market value, income-based methods like discounted cash flow and asset-based methods like adjusted book value. Professional reports can swing settlement talks, and we can challenge those assumptions and protect your financial interest.
What is the difference between a derivative lawsuit and a direct lawsuit?
A derivative lawsuit occurs when a shareholder sues on behalf of the company for harm done to the company, and the recovery usually goes to the company. North Carolina generally requires the shareholder to make a demand on the board before filing unless the shareholder shows that a demand would be futile.
A direct lawsuit occurs when a shareholder sues for harm done to the shareholder’s own rights, and the recovery goes to the shareholder. Examples include claims for denial of voting rights or wrongful exclusion from management.
What is considered a breach of fiduciary duty in a North Carolina partnership?
Partners owe duties of loyalty and care to the partnership and to each other. Common examples of breaches include:
- Self-dealing or taking a business opportunity for oneself
- Competing with the partnership
- Failing to disclose material financial information
- Diverting partnership funds or assets
- Gross negligence in managing partnership affairs
If you suspect a breach, we can review the facts and advise you on enforcement, remedies and next steps. At Robertson & Associates, we handle these matters with speed and practical focus.
Settle A Dispute With Your Goals In Mind
We understand the importance of cost-conscious, straightforward counsel for our clients in Mecklenburg County and beyond. If you want guidance through the dispute resolution process while also protecting your best interests along the way, make sure you have the legal representation you deserve at your side. To schedule a consultation, call us at 704-597-5774 or reach out to us online. We are ready to talk; are you?