When two or more people contribute towards the ownership of a company, doing business becomes more effective, so when this partnership functions appropriately, everyone involved benefits. However, a fallout among the partners could threaten the business's prosperity and cause rifts between employees and shareholders. Therefore, drafting a framework to prevent a partnership dispute is essential.
Potential Partnership Disagreements
- Each partner's capital contribution
- Ownership division among partners
- Partnership compensation
- Decision-making procedures
- Handling additional contribution
- Methods of resolving conflicts
- Dissolution process
How to Collaborate with Minimal Conflict
- Draft a Partnership Agreement: While having a partnership agreement can be extremely beneficial, it's important to remember that it's not a legal agreement. That being said, it does go a long way in preventing potential disputes. A partnership agreement stipulates the partnership's general rules and the partners' roles, making it an essential tool to avoid conflicts as it provides a framework to resolve disputes when they arise.
- Keep it Professional: Although you should select partners with whom you share the same values or those with complementary skills, it is essential to maintain boundaries even when you disagree. How you interact with other partners can mean the difference between the success or failure of your business. Remember that your words or actions during a disagreement can significantly impact the partnership, so listen to what other partners have to say and refrain from using offensive language. Rather than winning the agreement, focus on finding a solution that works for all parties.
- Seek Other Dispute Resolution Options: Sometimes disagreements escalate, and if it becomes challenging to reach a consensus internally, consider seeking the help of a mediator. While it is not the mediator's job to make decisions on behalf of the partners, they will facilitate the process for effective communication.
- Contact a Business Dispute Lawyer: If you are afraid that you may be unable to reach a consensus in a partnership dispute, consider reaching out to a business dispute attorney. A Charleston business dispute lawyer can help you find the best conflict resolution method. The attorney can also look at your partnership deed, the facts of the dispute, and the operating agreement to help you discover your legal options.
Get in Touch with Our Charleston Business Dispute Lawyers
At Lesemann & Associates, we will offer the legal support you deserve to resolve the partnership dispute. You can also reach out for assistance addressing potential conflicts before they arise.
Contact us today to schedule an appointment with one of our Charleston business dispute lawyers.