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Help! I'm facing a business-related dispute.

Forming a business in California is similar to forming a marriage. It is intended from the very beginning to be a long-term relationship. The partners essentially agree to connect their futures and personal goals together and stay faithful in the business relationship. However, you may find yourself in need of a business divorce if you have been in business with a partner for a while but have gotten into a dispute and now need to go your own way.

Business people of all types face these dilemmas, ranging from older individuals with more established businesses to millennials facing disputes about new technology companies. When a business-related dispute occurs between partners/shareholders, an attorney's guidance may be necessary to address it effectively.

What are some common reasons for a shareholder dispute?

Shareholder disputes may erupt if directors have breached their duties or if shareholders have not been given the accounting and financial information they are required to be given. In some cases, a shareholder agreement has been breached, or there might be some general disagreement regarding a company's strategy. Dividend policies may also spark disagreement among shareholders.

A particular type of shareholder dispute is known as a derivative claim, where a shareholder files a legal suit on the company's behalf. The lawsuit might be against a director or against a third party who has allegedly caused damage to the business.

What are my options if I am in a business dispute?

Although business partners are able to address some business-related disputes on their own, in other situations, the positions of the partners are much too far apart. In addition, sometimes disputes involve strategic or financial interests. In these cases, with the help of a knowledgeable attorney who will thoroughly research the facts of your case, it may be possible for you to achieve a settlement with your partner on terms that are favorable to both of you.

If a settlement is not possible, assertive and strategic litigation is necessary to protect your business interests and rights in California. The attorney will go over with you the weaknesses and strengths of your case and give you an idea of what your case's outcome may be so that you can make an informed decision about whether settlement or litigation is your best route in the midst of a business-related dispute.

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Chodos & Associates
1880 Century Park East
Suite 615
Los Angeles, CA 90067

Toll Free: 866-986-7255
Phone: 310-598-3405
Fax: 310-203-3866
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