Shareholder and Partnership Disputes Involving Families | Franchise Law Blog

Why Do So Many Shareholder and Partnership Disputes Involve Families?

The short answer is because…

  1. There are many family owned and operated small businesses. If you are facing a shareholder or partnership dispute with your siblings, extended family or even your parents, just know that you are not alone;
  2. More often than not, family owned businesses are more successful than other businesses and so there is a lot at stake;
  3. Poor communication and poor succession planning can lead to misunderstandings over time.

Throughout my many years as a lawyer specializing in shareholder and partnership disputes, I would like to tell you that I am always surprised when a partnership and shareholder dispute arises among family members – but I am not, they occur often and in many instances can be much more intense than the typical partnership dispute. Over the years, I have given a lot of thought as to the motivations that trigger these disputes and the circumstances that take a family and a successful family business and turn everything upside down.

Unfortunately, with a lot of family owned businesses there is a lot at stake and there are many personalities battling for control, including:

The multi-generational nature of family owned businesses make them prone to partnership disputes. If you are faced with one, you need to carefully evaluate your legal options and a realistic course of action for protecting your interests. A misstep in the pre-litigation stage of your dispute (i.e., where one partner is attempting to lock-out the other or cut salaries, etc.) can have a lasting impact on your litigation strategy and the overall outcome of your legal representation.

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Date: 01/02/2015 | Category: Partnership Disputes

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