We Help Businesses Resolve Internal Disputes
Many businesses in Virginia consist of more than one owner or decision-maker. While having a team run your business offers many advantages, there can also be serious consequences to the business when disputes arise between the owners or managers regarding the affairs of the business. In some cases, the day-to-day operations of the business may grind to a halt as multiple owners, managers, or investors fight for control of the business and its assets.
Corporations, partnerships, limited liability companies, and other business entities with more than one owner, manager, or shareholder are particularly susceptible to such disputes, since the law and/or governing documents typically offer substantial powers and protections to those with rights to control and management of the entity. While such disputes can take many forms, below are a few common scenarios that can lead to potentially crippling consequences for your business:
- A partnership in which one or more of the partners refuse to cooperate in management decisions, leading to deadlock and potential claims for dissolution of the partnership.
- A corporation in which one or more shareholders disagree with the decisions of management and seek to exercise their rights as shareholders to challenge those decisions, often through claims of breach of fiduciary duty.
- A limited liability company in which one or more members misuse the funds or assets of the company for personal gain, which often constitutes a breach of fiduciary duty to the company.
- A partnership in which one or more of the partners refuse to make required contributions of capital to the partnership, demand excessive compensation, or attempt to make improper withdrawals from the funds or assets of the partnership.
- A limited liability company in which one or more of the members seek to sell their membership interests to an outsider who many not get along with the remaining members of the company.
- Disagreements between owners winding up a business regarding appraisals of the value of the business and the amount of distributions of the assets of the business to which each owner may be entitled upon dissolution.
- Cases where one or more owners attempt to force out other owners and obtain control of the business.
Enforce Your Rights as a Business Owner or Shareholder
While laws and governing documents (such as operating or partnership agreements) often provide a variety of procedures for dealing with such situations, these laws and documents are often complex and sometimes unclear. Thus, it is critical to obtain the advice of an experienced business attorney as soon as it appears that a dispute may arise in your company. Obtaining counsel early on is particularly important since internal disputes can often bring the business to a grinding halt, making it difficult or even impossible to perform basic functions such as paying bills, repaying loans, or shipping products. Falling behind on bills and contractual obligations to others often magnifies the harm caused by internal disputes because it can lead to lawsuits being filed against your company.
The business law attorneys at Weisberg & Weisberg, based in Newport News, VA, have years of experience successfully representing a wide variety of business entities, owners, directors, officers, managers, and shareholders in connection with internal business disputes. In representing such clients, we focus not only on resolving the dispute at issue, but also on coming up with solutions that may allow the business to continue operating, thereby minimizing the overall harm to the company. In cases where litigation appears to be the best or only option, we are equipped to provide aggressive representation in pursuing and vindicating our clients’ rights in court. If a dispute has arisen within your company that threatens its success and profitability, contact Weisberg & Weisberg today to discuss the multitude of options available to pursue and enforce your rights as a business owner or shareholder. Call 757-528-2643.