Disputes between shareholders and partner-s can occur in any business entity and are devastating to the day-to-day operations and the future of a business. A triggering event can become a bitter battle between members to control the business’s direction, requiring the start of a legal proceeding to seek a resolution. Shareholder and partnership disputes are emotionally charged issues, and prompt action by experienced legal counsel is essential to protect your capital and business assets.
With the onset of a new business venture or any modifications to an existing business, it is important that the governing documents, such as shareholder agreements, partnership agreements, and operating agreements, clearly detail the roles and responsibilities of its members. It is beneficial to have a provision for dispute management, such as alternative dispute resolution, in every contract. A failure to meet shareholder and partnership expectations can cause frustration and disagreements, as fundamental differences arise in how the business should be managed.
Worman & Sheffler, P.A. has been successfully representing clients in shareholder and partnership disputes since 2006. Its founding members, Attorneys Robert B. Worman and Scott S. Sheffler, have extensive experience in the representation of clients in business and construction law matters, focusing on resolving disputes through alternative dispute resolution and courtroom litigation.
Common Circumstances Surrounding Shareholder and Partnership Disputes are:
- Disgruntled minority shareholders, due to allegations of fraudulent or oppressive acts by the majority shareholders
- Allegations of a breach of shareholder’s agreement, resulting from a perceived violation of corporate regulations
- Breach of fiduciary duty, such as non-payment of distributions or a member not acting in the company’s best interest
- Challenges in succession planning for determining the future management or dissolution of a corporation, which may affect the ownership and shareholder interests
- Disagreements regarding compensation for management personnel and general employment practices
- Merger and acquisition disputes, when company assets are being sold or when entering into purchase agreements
Involuntary Dissolution of a business is not preferred, but at times can be the only solution for disputes. A corporation can be involuntarily dissolved by the court’s judicial action when a deadlock occurs between partners. The court decision can force a sale of ownership to one of the members or order the sale of the business altogether as a solution for shareholder disputes. When settling corporate disputes, shareholders may choose to receive the fair value of their shares and leave the company.
Worman & Sheffler, P.A. are Experienced Florida Shareholder and Partnership Dispute Lawyers
From small business entities to large corporations, Worman & Sheffler, P.A. can develop a comprehensive strategy for our clients to meet their goals and objectives. We have decades of experience in commercial litigation and can analyze and create effective solutions to meet your needs. Our office is located in Winter Park, Florida, and we serve clients throughout the State of Florida. Contact us at 407-843-5353 or 888-279-3811 (toll-free), to discuss all of your legal options.