Legal options for dealing with an uncooperative business partner

Columbia business owners may be interested in some options available to deal with a partner that is not cooperating. Avoiding a deadlock can be accomplished in a few ways, depending on the circumstances.

Many small businesses are owned by a small number of people. This can spell trouble when one of those business partners is uncooperative or not performing. Resolving the situation can depend on two main factors. In business entities that are set up as partnerships or meant to act like a partnership, like LLCs, each partner is meant to have equal control of the business. This means that a majority vote of other partners may not be enough to solve the problem. In corporations, however, having a majority of owners may be enough to get around the lack of consent.

When a majority is unavailable, dispute resolution provisions in the business formation documents may be helpful. There may be a provision that calls for mediation or some other way to resolve the issue and move past the impasse. Another way that the business formation documents can help is by dictating a mandatory buyout procedure that can allow the other partners to buy the uncooperative partner’s shares in the business. This can resolve the problem without having to resort to litigation.

When business disputes cannot be solved through these means, the courts may be the only answer. An attorney with experience in business litigation may be able to help by examining the conflict and determining the best way to proceed. The attorney may then be able to bring a lawsuit in civil court to dissolve the company or force a buyout of that partner.

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