When an Ohio company is initially formed, a decision must be made concerning how that company will be structured. There are multiple options available, so the involved parties must carefully weigh the positives and negatives associated with each option to determine which structure best fits their business’s current needs while allowing its future growth. For many, the best option is the creation of a business that allows for multiple shareholders. The only drawback to this structure is that any company with shareholders has the potential for shareholder disputes to arise in the future.
Shareholder disputes can arise among those with an interest in companies of any size. From partnerships to large corporations, these disputes can disrupt business and create rifts between those responsible for the company’s management. In fact, the only way to ensure a shareholder dispute never arises is to remain a business’s sole proprietor, which often becomes impossible as a business becomes successful and grows to the point at which one person cannot oversee all aspects of its governance.
What is the most common cause of shareholder disputes? When businesses are formed with multiple shareholders, it is understood that those shareholders owe each other a responsibility. That responsibility is referred to as fiduciary duty in legal circles. This means that they are expected to act with honesty and integrity for the good of the business. Shareholder disputes generally arise because one or more shareholders are believed to have acted irresponsibly or in a way that has caused or has the potential to cause damage to a business.
Fortunately for shareholders in Ohio-based companies, help for shareholder disputes is available in the form of an experienced business law attorney. This type of legal professional will have experience in both negotiating and litigating business disputes. Armed with experience and extensive knowledge of business law, an attorney can guide you through the legal process, allowing your business to continue in a successful direction.
