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What happens when an ownership dispute arises?

On Behalf of | Mar 4, 2021 | Business & Commercial Law

People who start a business together do so with a similar idea in mind. Their principles and visions align, which makes for a strong foundation for a new venture.

As time goes on and the business evolves, there may come a point where those who started as a strong team begin to disagree. When these squabbles become frequent enough, the company’s stability may come into question and threaten its future success.

Reasons owners disagree

People change, and as in any personal relationship, it is crucial that they change together rather than grow apart. For business owners, this may mean remaining open to the other’s evolving viewpoints and differing opinions. A common reason for ownership disputes is a failure to compromise after expressing differing views. When partners cannot hash out their differences of opinion on how to handle the business, one may begin to strike out and make decisions without the other. This leads to a feeling of betrayal and eventually to fighting. Money and corporate oversight are common factors in ownership disputes.

Resolutions of ownership disputes

The size of the business and its structure may determine how the parties handle disputes. Mediation between the parties is one way to settle difficult business issues. If one of the owners commits a crime, such as embezzlement or theft, the authorities may intervene. Some disputes end when one owner decides to leave. The remaining ownership buys out the exiting owner’s portion of the business.

Regardless of how a dispute happens, its conclusion determines how the business moves forward. Getting to the bottom of ownership issues is crucial to the business’s survival.