Founding a company can be taxing event especially when it involves a partnership clause. Likewise, a group of friends getting together with the intention of forming a business entity can make all the concerned parties proud. Unfortunately, trouble begins when financial discrepancies crop up eventually causing the share holders to feel betrayed. Bickering among the parties may go on endlessly with many of them threatening to take legal action. It is necessary to resolve all shareholder disputes in San Jose and Santa Clara CA in the right manner before things get out of hand and results in dissolution of the company.
It would not do to become depressed and avoid meeting the share holders altogether. On the contrary, it would be best to look at the problem objectively and attempt to resolve it as best as possible.
Tips for solving business disputes
· Clarity of thought- It is important to maintain calm and look at the problems objectively without being dragged into arguments. Most companies have their legal department workout the issues r employ an experienced attorney to check the legal rights of all concerned before dealing with the accusations and threats.
· Types of Problems- There are sure to be numerous problems surfacing as a new business entity gains ground slowly but surely. While most of the concerns of the shareholders happen to involve the company finances, there can be ego clashes or sharing of power as well. It may be necessary to get to root of the problem without letting the concerned parties to be aware of the situation.
· Agreements- It is of paramount importance to have a legal agreement signed by all the stake holders after the company is formed. The agreement is usually created by a legal professional and states the terms and conditions of operating the company. Furthermore, it is certain to contain solutions for different scenarios including resolving disputes that may arise from time to time. While most business organizations have the ways to resolve the issues included in the agreement, others may also spell out the responsibilities of the existing share holders should the business be dissolved or a few of the share holders decide to sell off their stocks.
· Convincing the Share Holders- Convincing all parties satisfactorily may be a trifle problematic for the business owner. Appointing a neutral arbitrator can prove to be effective with the professional being able to mediate all matters thus solving the dispute well and truly. Taking the dispute to the court is the last resort that the concerned individuals are eager to avoid more often than not. The business owner may achieve the objective by re-negotiating the payments and introduction of venture capitals o something along those lines.