Business Partner Disputes in a Time of Disruption
This time of rapid economic disruption is forcing businesses to restructure. Restructuring may, among other things, necessitate changes to compensation structures, personnel, powers, and duties of management, and in some cases the dissolution of a business relationship. Florida, like many states, has statutes which govern the operation of different corporate structures, from corporations to partnerships, and limited liability companies. Governing statutes may also be modified, where permitted, by partnership, shareholder, and operating agreements, to address key issues specific to the business circumstances. Indeed, separate agreements govern many businesses.
Nonetheless, not every issue can be envisioned in an agreement, such as the circumstances the world is facing today. A hard stop of business activity can bring even a long-standing business to the brink of destruction in a matter of months. As government aid begins dissipating in the coming months, many businesses, and particularly small businesses, will face hard choices. Shareholders, Members, and Partners (the “Shareholders”) may require the benefit of counsel. Whether the Shareholders seek advice prior to making a decision, or if difficult decisions lead to disputes between the Shareholders that cannot be resolved internally, it is important to contact an attorney experienced in Shareholder disputes to help facilitate a resolution.
At The Foodman Firm, we have extensive experience with Shareholder disputes involving any type of entity structure whether by providing advice to help partners avoid a dispute, or by representing a partner pre or post-claim in court or in an arbitration.