Facts About Shareholder Oppression In New York City NY And Raleigh NC
Running a joint business with friends or family members, sharing both the responsibility as well as the profits is good. Unfortunately, there is no ‘ever after’ clause attached to it. Business partners may often disagree with the stake holders believing in different things. Sure, a mediator would be able to control the situation somewhat but many a business gets dissolved due to differences of opinion between the major share holders and lack of trust.
That is not the only issue that lawyers have to hear about though. There may be instances of shareholder oppression in New York City NY and Raleigh NC too with a minor shareholder being forced to bow to the wishes of the business owner or the major shareholder. The concerned individual may be terminated from the board many a time or have to resign by selling off the shares at a loss.
Finding a proper solution to such a situation might not always be possible either. True, the legal professionals often seek the answers in the laws of the corporation but there may be deeds that bypass the situation entirely too. However, the oppressed stake holder is entitled to appeal to the court of law for justice. While dissolution of the company might be the only way out, the oppressed partner may also ask the court to intervene and hold the major stock holders liable for breach of fiduciary responsibility.
A business divorce in New York City NY and Raleigh NC, on the other hand, is a parting of business interests. All the concerned partners and major stockholders need to divide the assets along with the profits amicably between themselves. However, it is not always about obtaining half of the share. There are a number of factors to consider before a business divorce can be regarded as successful.
The process is more or less similar when it comes to wrapping up. From small business operators to large players in the market every single stakeholder would have to follow the legal procedure.
How To Proceed After A Business Divorce
It is essential to have a legal professional by the side when one is going through the winding up process. The partners first need to settle the debts of the company obtain the outstanding dues from defaulters and sell off the assets of the company that would no longer be operational. However, the procedure needs to be handled in accordance with the State regulations.
Once the partners agree on dissolution of the business, it is important to contact the insurance carrier for commercial insurance and look to be protected against legal suits that may be filed by irate third parties after the company closes down.
The certificate that had entitled the business partners to operate the business has to be surrendered to the concerned authority as well.
The ‘Secretary of State’ also needs to be informed about the present situation with all the partners agreeing to discontinue using the trade name and/or brand that had been associated with the business so far.