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Protecting a business by avoiding shareholder disputes

On Behalf of | Oct 28, 2021 | Business Law Litigation

Certain types of business disputes can affect the operations and profitability of a Florida company. This is a possibility in situations where shareholders are at odds with the management of the company over certain decisions. Differences in opinions can escalate into issues that eventually have a more significant impact on a company. It is typically best for a business to implement strategies designed to avoid partnership disputes. 

Preventing problems before they start 

Many types of shareholder disputes are preventable before they even begin. Companies may be able to avoid problems through the implementation of thoughtful strategies, including a shareholder agreement. Important terms in this agreement include: 

  • Strategy for balancing wishes of minority and majority shareholders 
  • Policies for transferring shares 
  • Steps for breaking deadlocks during votes 
  • Requirements for precise record-keeping 
  • Use of mediation to resolve disputes 

Shareholder disputes are not only inconvenient, but they can also be distracting, costly and complicated. It is always preferrable to avoid these types of events, and it is prudent to have a roadmap in place that allows a company to address such issues in a prompt and reasonable manner.  

Resolving issues promptly 

A Florida business dealing with shareholder disputes may find it beneficial to work with an experienced business law attorney at every step. Through knowledgeable guidance and quick action, it may be possible to mitigate the potential damage done by these types of issues. It may also be helpful to seek a legal opinion when developing a strategy by which a company can avoid disputes altogether. 

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