There are many scenarios in which a partnership must dissolve for the good of the company. The most common one is when partners simply cannot see eye-to-eye or run the business together effectively any longer. In some cases, personal problems plaguing one partner will necessitate the dissolution of the partnership.
Business divorce also becomes necessary in scenarios in which one of the partners has acted deceitfully or unlawfully. In this scenario, a business divorce might be the only way to save the company.
We work with other reliable and skilled professionals who can help evaluate the state of your company and help you find your best path forward, including business valuation experts, tax specialists, and forensic accountants. We can help you negotiate the terms of your business divorce.
Claims of Minority Oppression
A minority oppression claim arises when the controlling partner engages in some sort of unreasonable conduct which infringes on the rights of the minority partner. In some cases this may be resolved by allowing the majority partner to buy out the minority partner.
These claims should be taken seriously, as the minority can at times force the sale or dissolution of the company if they prevail in court.
When one of the partners has acted unlawfully or deceitfully it’s vital for you to consider your goals. It may be advantageous to simply oust the disloyal owner and be done with it. In other cases it may be necessary to recover stolen or mismanaged assets.
In some cases a forced dissolution of the business is the only proper option, the only one that may protect you from legal consequences or may recover the remaining value left in the company.
We will evaluate your options in light of your goals and help you find your best path forward after these kinds of unfortunate discoveries.
In many cases a business divorce can be handled amicably with the help of a buyout.
Ideally your buyout agreement will be in place long before you’d ever need to use it, but if you are at a critical point and don’t have one in place we can nevertheless negotiate one on your behalf.
After the Business Divorce
Once a business divorce is complete there will be additional work to do. New shareholder or partnership agreements may need to be drafted and signed to account for the loss of the former partner or member.
You may even need to make changes in your operating agreements, bylaws, and employment agreements to ensure that problems don’t arise again in the future.
Get Help Today
Business divorces are complex. Don’t be blindsided and don’t accept a deal that isn’t in your best interests.
Instead, call (516) 679-4300 to set up a consultation today. Our team is ready to help.