Disputes between shareholders are common in today’s business world and may arise in any partnership no matter how carefully the initial plans are drafted. Sometimes, such disputes can be resolved simply by a compromise between the involved parties. Often, however, they can turn into a serious conflict that may substantially hinder or even destroy the business from the inside. Understanding how to effectively navigate shareholder disputes to prevent a worst-case scenario is a necessity for building and maintaining a successful business.

The Booklet highlights the key issues and solutions concerning:

• What risks and adverse effects to business operations are potentially caused by shareholder disputes?
• How to counter obstruction of business operations by one of the shareholders.
• What constitutes a breach of fiduciary duty?
• What actions should be taken when the company has only one legal representative and that person breaches his/her fiduciary duty?
• What steps can minority shareholders take to protect themselves from the majority shareholders?
• What is needed to minimize the risk of a dispute at the very first stage of establishing a partnership?

Authors: Stephen Le

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