business ownership disputes
Business ownership disputes center around the issues of control, assets, exits, and unfair competition practices.

Disputes between business owners range from simple disagreements to complex derivative action lawsuits. These disputes are often emotionally charged. A thoroughly thought-out negotiation strategy in combination with appropriate legal tools will bring clarity and facilitate resolution.
  • Breach of fiduciary duties
    Some (but not all) business owners, officers, and directors may owe fiduciary duties to the company or other co-owners. If a person self-dealt to gain advantage over the others, the law provides for remedies.
  • Exit strategies
    If a business co-owner in a limited liability company, corporation, or partnership wishes to exit the company, the options depend on the business entity type, the existing agreements, the operating documents, and other factors.
  • Buyout and valuations
    When a business co-owner wants to be bought out of the company, common disputes involve disagreements over payment, the value of the company share, and the process of the buyout.
  • Majority v. minority ownership rights
    Minority owners have legal tools and remedies. They include derivative action, financial audit, injunctive relief, and judicial dissolution. However, the governance and majority have strong defenses, too.
  • Deadlock situations
    To break the deadlock, business owners may negotiate, mediate, or litigate the dispute. If the deadlock is still not resolved, unfortunately, it may lead to judicial dissolution.
  • Dissolution and winding up
    The dissolution disputes include the issues of asset distribution, responsibility for debts, and the winding-up procedures. Like with buyout, valuation, and deadlock situations, if not resolved amicably, the disagreements may lead to judicial dissolution.
  • Profit distribution and accounting
    Business owners have the right to receive the profits from the company. However, this right may be limited, depending on the company's entity type, operating documents, and the surrounding facts.
  • Ownership of intellectual property
    The disputes may arise between the company and the business co-owners about who has the business's intellectual property (trademark, copyright, trade secrets, or patents).
  • Personal asset protection
    While business owners' personal assets are separate from the company, this rule is not without exceptions. In certain circumstances, the owners' assets can be exposed to liabilities.
Business Ownership Disputes FAQ
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