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Dealing with Non-Controlling and Minority Partners

Your Partners Are Interfering with the Growth of Your Business

So there are a number of reasons why you may have minority or non-controlling shareholders and partners. The "partners" (whether working or non-working) may have been around when the business was established, you may of brought them on later on based on the promise that he or she would add value to your business and undertake certain roles or you may have "inherited" them through family. No matter the circumstance like many others you may now be faced with the reality that they are hurting your business, impeding growth and taking advantage of their ownership interests.

Either way, for the controlling shareholder there is a proven course of action for dealing with these partners. More often than not "controlling shareholders" and their lawyers take unnecessary and overaggressive action (i.e., like lock-outs, terminations and movement of business assets) that leave controlling shareholders exposed to outrageous claims. That is they make the non-performing minority shareholder a "victim" and invite intervention by a court.

A Proven Course of Action

There is a proven course of action designed to "expose" the violations committed by your partner, document his or her non-performance and, when the time is right, to "shut down" the access and rights of your partners for the purpose of protecting your business. Preemptive litigation, if planned and executed properly will afford efficient and overwhelming results.

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Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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