Shareholder, Patnership & Commercial Disputes
Business associations come in many different forms: traditional corporations, partnerships, or limited liability companies (LLCs). Each of these associations provides their shareholders or members with different methods by which they may assert their interests.
The key to resolving any dispute whether you have a corporation, partnership or LLC is the documents that were created when the entity was formed.
A corporation is governed by the Articles of Incorporation and its Bylaws. A partnership is governed by the Partnership Agreement while a LLC is governed by its Articles of Organization and its Operating Agreement.
Disputes within a business can take on many forms. For example, a corporation can have difficulties when its stockholders start feeling pressure. Stockholders have various rights that may be asserted typically through derivative actions. A derivative action results when the stockholder asks the company to take certain action. If the company declines, then the stockholder may be allowed to sue to force the company to act.
Partnership disputes are also common in business. When the partners disagree on how the business should be run, a legal dispute may arise. A lot of how the dispute will be resolved depends on the number of partners and the content of the partnership agreement.
Finally, LLCs are also subject to similar disputes as the previous two types of entities. However, instead of having separate shareholders or partners, LLCs may have disputes between the members or between the members and the manager.
This combination of potential disputes can be delicate. When consulting with your Attorney, make sure you are clear who the Attorney represents. Does the Attorney represent the entity or does the Attorney represent you personally and your interests? In these types of disputes conflicts of interest arise and having you own Attorney to represent you is the best course of action.
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