Stormy Seas for Businesses That Neglect “Divorce-Proofing” Shareholder Agreements
By: Howard Lang, Esq. and Rob Lang, Esq.
Litigation between business partners, sometimes termed “business divorces,” can be as ugly, contested, high-stake, costly, and emotionally taxing as family law divorces. These disputes commonly occur between partners regarding governance, valuation, and fiduciary duties, among others. Shareholder agreements (or operating agreements for LLCs) serve as the business partners’ prenuptial agreement, creating foresight and certainty for all parties in the event that the business marriage goes sour. Although not guaranteed, shareholder agreements will help partners keep the emotion out of a business divorce when a dispute arises. In such a situation, it is helpful to have a “rulebook” that everyone signed onto at the outset of the business.
To read more about divorce-proofing a shareholder agreement, please complete the form below.
Complete the form to get your free guide
Preservation of S-Corp Status in Trust Administration
Download the article to find out why it is critical to examine how to preserve S-corp status at all stages of the estate planning life cycle.Learn More
Adapt Your Law Practice Checklist
In light of COVID-19, see how you can adapt your law practice with this free checklist.Learn More
shA House Divided: Deadlock in a 50-50 Partnership
Read about the destructive consequences that can emerge if a partnership agreement lacks provisions for resolving such an impasse and learn what you can do to help your business clients avoid this type of situation by reading, “A House Divided: Deadlock in a 50-50 Partnership.”Learn More