Strength in numbers. For an organization to work effectively it needs to have partners, share holders etc. and all of them need to be on the same page and have clearly defined ambits of responsibility. A good organization is held together by contractual understandings.
These make sure that the share holders, the business partners, etc. have their responsibilities, liabilities and sphere of operations defined. Shareholder Agreements, when properly drafted, can substantially simplify the legal consequences should any Shareholder Dispute arise. Shareholder Agreements are crucial for a company to function smoothly.
Partnership Disputes
In time, various company shareholders and/or management can start to disagree on matters related to business strategy, business models, corporate governance, asset management, or financial distribution.
This is the start of cracks starting to form in an organization’s machine. Parties who are already signatories of the agreement may decide that the aims they of the company have changed and they are looking to change the rules to suit their needs.
Some of the common issues that may arise include:
- Problems that arise if a new partner is added to the fold of the business
- Issues with employment
- Incomplete or falsified agreements and breach of confidentiality
- A breach of Fiduciary duty
- Problems created by bankruptcy, insolvency or commercial debt
The Dangers it holds for the Organization
Unless a business is a well oiled machine, it is hard for it to function smoothly. Business disputes and disagreements over contracts can eat and organization up from the inside. Minor disagreements can lead to major break ups within the business hampering its efficiency and effectiveness.
Even family businesses can fall prey to internal wrangling and disputes and it is the job of the company to hire good commercial lawyers who are able to represent both parties and come to a logical, acceptable and beneficial outcome for the business.
A good commercial lawyer knows that the best solution to a commercial dispute should be one which is widely accepted, not too complex to put the parties off and one that leads to the least damage.
What a Good Commercial Lawyer can do?
Problems between shareholders, business partners etc. can be damaging for a business. Nowland believes its lawyers are competent enough to help you deal with these issues and the drafting of agreements, etc. without the slightest of issues.
Some of the things that a good commercial lawyer can help you with include:
- Mediating, negotiating and helping the two parties arbitrate their business differences and lead them to a peaceful conflict resolution method.
- Tackling issues that involve breach of fiduciary duty, problems of unfair competition, leaking of trade secrets, illegal actions, etc.
- Drafting and outlining the obligations and the rights that are held by the directors, shareholders and officers of the organization.
- Creation of protective measures being placed into the businesses structure which ensure that there are certain pre defined ways of dealing with disputes that may arise in the business.
- Allowing drafting in of measures that help officers and directors unwilling to work with the business to leave the organization amicably, whiles safeguarding the business interest of the corporation, first and foremost.
Your Way Out of the Mess
Nowland Law offers legal counsel related to share holders Agreements and Shareholder Disputes. The firm ensures that your Shareholder agreement will spell out the duties and protections of majority and minority shareholders, build in prudent protective procedures to ensure key members are fulfilling their duties in good faith, and build a working foundation for corporate procedures, voting, resolutions, etc. Shareholder & Partner Disputes are one of the most critical matters a company might face.
Division and strife that escalate to this stage may bear serious operational consequences. Work with a legal counsel that seeks to defend your position and keep the health of the company in mind when developing strategies. Talk to Nowland Law about creating a prudent Shareholder Agreement, or representing your position for a Dispute.