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What is a Deadlock in a New York Business?

Corporate "deadlocks" relate, primarily, to closely held New York corporations, partnerships and limited liability companies. Basically a deadlock is where you and your business partners disagree and where under the governing corporate legal documents (such as a partnership, shareholder or member operating agreement) no one party has control.

When faced with a "corporate deadlock" you need to proceed with caution and carefully plan out your actions as "deadlocks" are typically, accompanied by a much larger partnership and shareholder dispute. If you are faced with an underlying dispute with your business partners, you should evaluate your legal rights with your New York business attorney and discuss with him or her how to effectively approach any claimed deadlock.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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