How to Resolve a 50/50 Shareholder Dispute in Florida
While it may be the correct choice for some entrepreneurs, going into a 50/50 partnership with another person creates some risks. For obvious reasons, a 50/50 shareholder dispute or 50/50 partnership dispute can be especially difficult to resolve.
If you are currently locked into a 50/50 shareholder dispute, it is imperative that you take quick action to protect your legal rights and financial interests. In this article, our Miami shareholder dispute lawyers highlight some of the strategies that you should use to try to resolve the dispute.
Always Start the Shareholder Agreement or Partnership Agreement with a Written Document
Business ventures should be based on some type of written document. Ideally, you and your business partner will have a partnership agreement or a shareholder agreement. A well-drafted shareholder agreement or partnership agreement should contain some type of basic procedure for resolving complicated disputes. Using the mechanism within the agreement is often the best way to proceed.
Early Intervention is a Must
When disputes arise in small businesses or close partnerships, early intervention is one of the keys to a successful resolution. The longer you wait to take action, the more difficult it will be to find an agreement that everyone is satisfied with. Take a moment and figure out the true stakes of the dispute. If it really matters, you need to be ready to take action to protect your rights. At this point, business mediation or another type of structured negotiation may be an advisable option.
Take a Collaborative Approach
Ultimately, business partners, especially 50/50 partners, have strong mutual interests. You do not want to destroy a successful business over a dispute. With some exceptions, it is often best to approach joint partnership disputes and 50/50 shareholder disputes with a collaborative mindset. By emphasizing points of agreement and shared interest, you can put yourself in the best position to find a workable compromise.
Business Dissolution is a Final Option
Protecting the health of the underlying business/partnership is important. At the same time, you can never let your personal financial interests take a back seat. In some cases, 50/50 shareholder disputes cannot be resolved. Dissolving the business is an option that is always on the table. Remember, when it has to be done, it is best to wind down a business on your own terms. If you and your partner have attempted to reach a compromise, but you have decided that there simply is no workable resolution, you should consult with a South Florida business dissolution attorney who can help find and navigate the best path forward.
Contact Our Miami, FL Shareholder Dispute Lawyer Today
At Pike & Lustig, LLP, our skilled Florida shareholder dispute attorneys are committed to providing clients effective and solutions-oriented legal representation to our clients. If you are involved in a 50-50 shareholder dispute or partnership dispute, we can help. For a strictly confidential initial consultation, please contact us today. We represent shareholders in Miami, West Palm Beach, and all over South Florida.