Shareholder & Partnership Disputes
Business partnerships and shareholder relationships are the foundation of many successful companies. However, disputes can arise due to disagreements over management, financial matters, or strategic direction, leading to conflicts that may require legal intervention. Whether through negotiation, litigation, or dissolution of the business, resolving these disputes requires skilled legal counsel who understands both business dynamics and legal complexities.
At GFW, our experienced lawyers assist business owners, partners, and shareholders in navigating shareholder and partnership disputes. We work to protect our clients’ interests through negotiation, mediation, arbitration, and, when necessary, courtroom advocacy. Our priority is to help clients achieve the best possible resolution while minimizing financial and operational disruption.
Understanding Shareholder & Partnership Disputes
A Shareholder or Partnership Dispute can arise for various reasons, including:
Breach of Shareholder or Partnership Agreements – Disagreements over contract terms, voting rights, or fiduciary duties.
Financial Mismanagement or Fraud – Accusations of misappropriation of funds, embezzlement, or failure to provide financial transparency.
Oppression of Minority Shareholders – Actions by majority shareholders that unfairly disadvantage minority shareholders.
Disagreements Over Business Strategy – Conflicts regarding the direction of the company, expansion plans, or major business decisions.
Exit Strategies and Buyouts – Disputes over valuation, buyout terms, or forced departures of partners or shareholders.
Breach of Fiduciary Duty – Claims that a partner or shareholder has acted in bad faith or to the detriment of the business.
Legal Remedies for Shareholder & Partnership Disputes
When business owners find themselves in a dispute, there are several legal avenues available:
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A negotiated settlement is often the most cost-effective and efficient way to resolve disputes. We work with business owners to facilitate discussions, clarify disagreements, and explore potential resolutions before escalating the matter to litigation.
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Arbitration and ADR methods, such as mediation, offer a private and often quicker way to resolve disputes without the cost and publicity of a court case. Our lawyers have extensive experience in guiding clients through these processes.
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The oppression remedy protects minority shareholders from unfair treatment by majority shareholders or directors. If a minority shareholder’s rights are being ignored or overridden, they may be entitled to legal remedies, including:
Compensation for losses suffered
Court orders forcing the majority to act fairly
A forced buyout of shares at fair market value
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Disagreements over business valuation often arise when a partner or shareholder wishes to exit. We work with financial experts to ensure fair valuations and negotiate equitable buyout terms.
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If a company’s directors or majority shareholders engage in misconduct that harms the business, minority shareholders may file a shareholder derivative action to protect the company's interests. This legal action allows shareholders to sue on behalf of the company.
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When disputes cannot be resolved through negotiation or ADR, litigation may be necessary. We represent clients in:
Shareholder and partnership lawsuits
Business dissolution proceedings
Enforcement of shareholder agreements
Injunctions to prevent damaging business actions
Minority Shareholder Rights & Protections
Minority shareholders often find themselves at a disadvantage in corporate disputes. Our legal team ensures that minority shareholders are aware of and can enforce their rights, including:
Right to Financial Information – Ensuring access to financial statements and corporate records.
Protection Against Oppression – Taking legal action if majority shareholders act in a manner that is unfairly prejudicial.
Buyout Rights – Advocating for fair compensation when forced to sell shares.
Right to Participate in Major Business Decisions – Enforcing voting rights and shareholder agreements.
Dissolving a Business Due to Disputes
In some cases, disputes lead to the dissolution of the business. Whether through voluntary winding-up or court-ordered dissolution, our lawyers help clients navigate the legal and financial complexities of:
Asset distribution
Settling outstanding debts and obligations
Ensuring compliance with corporate and tax laws
Enforcing Shareholder & Partnership Agreements
In some cases, disputes lead to the dissolution of the business. Whether through voluntary winding-up or court-ordered dissolution, our lawyers help clients navigate the legal and financial complexities of:
Asset distribution
Settling outstanding debts and obligations
Ensuring compliance with corporate and tax laws
CONNECT WITH OUR
Shareholder & Partnership Dispute Lawyers
Why Choose GFW’s Shareholder & Partnership Dispute Team?
1. Extensive Experience in Business Law
Our legal team has years of experience handling complex business disputes. We understand the financial and operational stakes involved in partnership and shareholder conflicts.
2. Strategic and Cost-Effective Resolution
We prioritize negotiation and mediation to save clients time and money. When litigation is necessary, we provide strong advocacy to protect our clients’ interests.
3. Tailored Legal Solutions
Each dispute is unique, and we develop customized legal strategies to achieve the best possible outcome for our clients.
4. Skilled Litigators and Negotiators
Our lawyers have a proven track record in courtrooms and negotiation settings, ensuring that our clients have the strongest representation possible.
If you are involved in a Shareholder or Partnership Dispute, seeking legal counsel early is crucial. At GFW, we help business owners navigate these conflicts effectively, whether through negotiation, mediation, or litigation.
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Eric Gionet
PARTNER
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Scott Fairley
PARTNER
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Andrew Wood
PARTNER
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Carole Redmond
SENIOR ASSOCIATE
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Alex Daley
ASSOCIATE
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Julia Tremblay
ASSOCIATE