Shareholder & Partnership Disputes

Using the Law to Solve Your Business Problems.

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Shareholder And Partnership Dispute Attorney

A business divided, like a nation, can not stand. A business can not operate successfully when ownership and/or management is divided, or at odds with each other. While your business may run smoothly on the unified direction of ownership and management, often the greatest threat to or obstacle for your business to overcome is from within, not from outside parties or competitors. A dispute amongst partners, members or shareholders can divide those responsible for the success of the business as a whole and destroy or grind the business to a halt.
Disputes may arise over:

  • The day to day decisions made to operate a business;
  • Outdated Buy/Sell Agreements amongst partners, members or shareholders;
  • Control over the management of the business and making of the day to day operative decisions;
  • Compensation and Profit Distributions or Bonuses;
  • Expenses;
  • The future direction of a business;
  • Competition from partner(s), member(s) or shareholder(s).

A partner, member or shareholder may be wrongfully excluded from participating in the management of the business or the benefits, whether fringe benefits, distributions or compensation accruing from his or her ownership interest in the business, by a majority or less than a majority of partners, members or shareholders of the business, commonly referred to as a “freeze out”.

This firm has worked for its business clients on many occasions to secure their business and their rights to participate in the management of the business and to receive the benefits that accrue from ownership of the business. Disputes may be able to be resolved through alternative methods of dispute resolution, such as mediation or arbitration. Unfortunately, some disputes, require immediate litigation to protect the interests of the business as well as your interest in it. This includes cases of:

  • Misappropriation or conversion of business assets for the benefit of a partner, member or shareholder, and to the detriment of others;
  • Claims that a partner, member or shareholder has breached a duty of loyalty, honesty and fidelity, otherwise known as a fiduciary duty, to the business or another partner, member or shareholder by conduct contrary to the interests of the business or its partners, members or shareholders, such as competing with the business;
  • Removal of a partner, member or shareholder for wrongful conduct; and
  • Freeze Out.

The Law of Business, PC has litigated and tried such actions on behalf of plaintiffs and defendants, to prosecute and defend such claims. The Law of Business, PC is intimate with the laws governing such actions and is able to explain your rights and obligations in relation to your business partners, members or shareholders.

While a dispute amongst partners, members or shareholders can lead to lost profits and a cessation of the business, if you come to this firm for the formation of your business, we will do our best to shape a united management and ownership, but plan for disagreement amongst partners, members and shareholders and build in binding methods of resolution to protect the interest of the business, as well as its principals, sparing you and your business from the stress and expense of costly litigation. It is far more difficult and costly to resolve a dispute after it has arisen than to plan for its resolution before the dispute arises.

Despite best efforts, there are irreconcilable disputes that may arise, in other words, a “Business Divorce”, and the only, or best courses of action are the transfer of the business between partners, members or shareholders, or the closing of the business, in other words, to effectuate a dissolution and wind-down of the business, in other words, a liquidation of the assets and just division of the proceeds amongst you and the other principals. The Law of Business, PC is able to represent your business through either process as it has for clients for years.

Don’t let a business dispute threaten your business and your investment of time, labor and/or money in it. If you are involved in a dispute with a business partner, member or shareholder, contact our office by telephone (610-434-0504) or e-mail ( to schedule an initial consultation.

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101 North Cedar Crest Blvd.
Allentown, PA 18104

(610) 434-0504