When Your Business Partnership Turns into a Fight - Here’s What Every Owner Needs to Know
Running a business with partners or other shareholders can be one of the most rewarding experiences… until it isn’t!
And when disputes unfold and they get too messy, personal and inevitably unable to salvage - you need to act FAST…
Whether it’s disagreements about the business, unequal distributions of power or MONEY or both or conduct that not only ‘feels’ unfair but is ‘oppressive’ or maybe a breach of ‘director duties’… you need to act efficiently.
I see a common theme:
People don’t act early enough - and by the time they do, damage is already done
AND ‘acting’ doesn’t necessarily mean legal proceedings…but it does mean getting advice.
More specifically ‘practical legal experience’ and ‘STRATEGY’
What I See Every Day
- Shareholder disputes don’t discriminate - they happen in every industry and every size and type of business.
- Often they involve claims of oppressive conduct BUT don’t ever just assume that because something wasn’t done ‘right’ that it’s oppressive or a breach. The laws can be quite prescriptive.
- Oppressive conduct often intersects with director duties, financial issues and insurance and you need an advisor that understands this.
And
my key message is this - You Don’t Need MORE uncertainty - You Need Strategy!
I work with business owners, directors and shareholders who are:
- Worried about inappropriate conduct in a business, worried they didn’t settle a shareholder agreement - don’t worry - act!
- Feeling sidelined by a dominant partner, director or other shareholder - this is very common.
- Unsure whether to negotiate or go to court but need help unravelling their affairs from the business or getting paid out!
I understand the stress that goes with these disputes and the legal landscape of D&O insurance, shareholder oppression, and Corporations Act claims and in particular these industry sectors:
- professional service business disputes because professionals have unique obligations and roles and risks can arise.
- building and construction industry which have unique risks around insolvency and litigation and need a lawyer who understands their sector.
- financial services, where licensing considerations and obligations to ASIC or other parties are also relevant.
Often, serious shareholder cases can be resolved much faster and more cost effectively than you think, even out of court…
OR
Through the Corporations List at the Supreme Court - see the attached Oppression Proceeding Program which provides a useful insight into this unique process - this can allow you to act quickly and with a clear plan 🚀 and minimise costs!
Don’t Wait Until It’s Too Late
If you’re in the middle of a dispute — or sense one brewing. Reach out sooner rather than later
This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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