BUSINESS ENTITY DISPUTES
Business entity disputes commonly arise when there is a disagreement about how a business is being managed. These disagreements can become an issue in any business with more than one owner, whether structured as a corporation, a Limited Liability Company (or “LLC”), or a Partnership. Disputes can also arise between two or more companies working together in a Joint Venture. Disputes can even arise in Sole Proprietorships if the Sole Proprietorship is jointly owned by a married couple.
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Typical business entity disputes will generally be partnership disputes between the partners of the business entity, or shareholder disputes between shareholders and the Board of Directors. Litigation of these disagreements will typically involve questions about whether the decisions of the company’s directors are protected by the “business judgment rule,” and whether the company is being managed in accord with the company’s governance documents and the law.