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Shareholder Disputes

Strategic support for Shareholder Conflicts

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Where two or more persons carry on a business in common with a view to making a profit, as a matter of law they may be operating a partnership, whether they choose to characterise their relationship as one or not.

The relationship between partners creates fiduciary duties to act in good faith, avoid conflicts of interest and provide a full account of partnership assets. Furthermore, the partners are jointly and severally liable for any debts and obligations of the partnership incurred while the relationship persists.

A breach of fiduciary obligations or a disagreement between partners can have significant ramifications for the partnership and if not resolved swiftly can adversely affect income and disrupt business. Where a partnership agreement exists, it should be the first step in resolving any dispute. However, where the dispute resolution clauses are insufficient to resolve the problem, one party refuses to comply or is attempting to challenge the agreement resolving the dispute can be extremely complicated.

Our team at Dormer Stanhope is experienced in providing cost-effective and expeditious resolutions to partnership disputes that will enable you and your partner to continue your working relationship or negotiate its dissolution amicably.

Whether you are involved in a partnership dispute, have concerns about the actions of your partner, or wish to negotiate an exit strategy from a partnership, contact Dormer Stanhope today and we will help you gain an understanding of your options and entitlements.

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