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- NY and NJ Shareholder Dispute: Taking Control of Critical Assets
- New York and New Jersey Partnership Disputes: The "Other Benefits of an Injunction Hearing"
- New York and New Jersey Shareholder and Partnership Dispute Lawyer Offers Information for the Best Course of Action in a Partnership Dispute
- Partnership Disputes: Protection for Oppressed Minority Shareholders
- Why You Must Look at Your Shareholder agreement Differently when Faced with A Shareholder or Partner Dispute
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- New York Partnership Dispute Order to Show Cause | Equal Shareholder Dispute in NY
- New Jersey Partnership Dispute Order to Show Cause | Equal Shareholder Dispute in NJ
- Steps to Dissolve Your New York Business
- New Jersey Partnership Dispute Order Show Cause: Non-Controlling Shareholder Oppression
- NY Partnership Order Show Cause | Shareholder Injunction NY
Business Litigation
Why You Must Look at Your Shareholder agreement Differently when Faced with A Shareholder or Partner Dispute
When faced with a partnership or shareholder dispute, your shareholder agreement / operating agreement takes on a whole new life. That is, rather than serving as the governing document to manage your continued and on-going business relations, it may now serve as either an impediment or asset to the wind-down or dissolution of your partnership relationship.There are many shareholder or operating agreement clauses that may be relevant to your dispute, such as,
- Provisions pertaining to non-competition;
- provisions pertaining to dissolution or wind-down;
- provisions pertaining to a triggered buyout of one partner or shareholder; and
- provisions pertaining to valuation.
Although this may sound counter intuitive but even if you want to trigger a dissolution, partner buyout or business valuation, sometimes, it is best to avoid directly pursuing this rights under your shareholder or member agreement.
Why? Because many times there are unintended consequences and based on the traditional structure of the more common New York and New Jersey partnership agreements, triggering these events may reduce your negotiating leverage. For example, rather than having your partner account for a breach of his or her obligations to your business, your partner may now "sit back" with his or her attorney and simply demand payout based upon a buyout event that you triggered. So always be cautious and clearly plan out your strategy with your lawyer before you start invoking remedies contained in your shareholder or membership agreement. Always be cautious about triggering a dissolution or buyout.
To Learn More about Business or Partnership Disputes, Contact Partnership Lawyer Charles N. Internicola at 800. 976. 4904
Why? Because many times there are unintended consequences and based on the traditional structure of the more common New York and New Jersey partnership agreements, triggering these events may reduce your negotiating leverage. For example, rather than having your partner account for a breach of his or her obligations to your business, your partner may now "sit back" with his or her attorney and simply demand payout based upon a buyout event that you triggered. So always be cautious and clearly plan out your strategy with your lawyer before you start invoking remedies contained in your shareholder or membership agreement. Always be cautious about triggering a dissolution or buyout.
To Learn More about Business or Partnership Disputes, Contact Partnership Lawyer Charles N. Internicola at 800. 976. 4904
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
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