A closely held corporation is a good model for small business owners who want to retain control of their company, usually among family members or a small group of shareholders. It is not unusual for a closely held business to have different levels of shareholders, including those who hold only a minority interest. Even when an Ohio company has a small number of people with ownership rights, it may not be immune to shareholder disputes, especially if the minority shareholders feel their rights are not respected.
Company growth, profits and stability are vital to many Ohio companies. As the company grows, it may decide that adding shareholders will afford the company the resources and experience needed for future growth and profitability. In many instances, this addition proves to be an asset to the company; however, as with most changes, there can be obstacles. It is possible that these obstacles can be in the form of shareholder disputes.
Ohio businesses often enter into written agreements with other businesses or individuals. These contracts contain the terms of those agreements between the parties. A business that decides not to honor a contract faces many potential consequences. Contract disputes can cause damage to one's business in numerous ways.
It often takes many people to help run a successful business. Typically, companies create boards with shareholders that can have at least some say in how certain operations within the company take place. However, it is not uncommon for shareholder disputes to take place when one or more shareholders become disgruntled with how the business is running.
One of the more common contracts a business in Ohio may use is the employment contract, and many of those contain noncompete agreements. While an employee may feel the noncompete agreement potentially hinders his or her ability to pursue better opportunities in a chosen field, there are ways to negotiate such contract disputes. Unfortunately, without the proper legal assistance, seeking a release from a noncompete agreement may result in negative consequences.
Better ingredients may make better pizza, but they don't always make better business. When the brand of a company is tied to the identity of the founder and CEO, it may be difficult to salvage the reputation of the product if the founder's own reputation is in trouble. Ohio fans of Papa John's pizza may be following the shareholder disputes that could affect the future of the chain.
Employers in Ohio and elsewhere do what they can to ensure their staff members are being paid fairly, yet at the same time not to the detriment of their companies. Certain laws allow employers to withhold overtime pay if their employees are classified in a certain way and their job duties meet the necessary requirements for that class. It is not uncommon for employees to fight such classifications, resulting in companies requiring assistance with business litigation.
Investors, stockholders and board members all have a vested interest in businesses with which they are associated. In each case, the individual is often motivated to do what he or she believes will provide the greatest return to both the company and the individual. As a result, these individual can disagree about how specific business decisions and funds are handled, thus leading to shareholder disputes within the Ohio business.
As a business grows, so does its potential for profits and controversy. Business growth often means there is a need to enlist additional employees, and if the Ohio business is a corporation, it may mean there is a need to expand the company's board of directors. With this increase in both profits and people, there is also the increased possibility for shareholder disputes.
An intentional oversight, not sharing the truth or misleading information -- these are all statements that can be used to describe the interactions among some business professionals. In many cases, the damage done is minimal or nonexistent and the matter is never taken into further consideration. However, in other cases, potential damage exists, shareholder disputes become apparent and the business may suffer. Ohio business professionals typically try to avoid the later scenario.