Disputes between business owners can get challenging in a hurry and may threaten the direction and existence of a company. Here are some common reasons why business owners may disagree with each other.
Some business partners owe each other a fiduciary duty. They must act for the good of the company and cannot place their own personal interests ahead of those of the company. Mismanaging company assets and agreeing to bad deals can be a breach of fiduciary duty.
When someone is a majority shareholder, they owe certain duties to their minority shareholders because they are in a weaker role. The majority shareholder has far more power, but they cannot use it to the disadvantage of their minority shareholders.
It is unfortunately common for businesses to have philosophical and practical disputes over the direction of the business. They may not be on the same page in terms of corporate strategy. If they cannot resolve their dispute, it can put the entire company at risk.
Owners may have agreements with each other or with the company. One or both owners may believe that the terms of the contract are not being honored, and the other is not delivering on their obligations.
There are two things that are crucial to address during disputes between owners:
If you need help resolving a business dispute, the attorneys at Naples & Spence are experienced in both dispute resolution and litigation. Send us a message online or call us today at 904.944.7429 to discuss your matter.
