Disputes between a business and its shareholders can be financially devastating and impact the day to day operations of a company. These disputes can affect employee morale and can even be the cause of a business going under. In this blog, we explain the importance of hiring an attorney to handle shareholder disputes.
Fiduciary duty refers to a party's obligation to act in the best interest of another party. For example, a corporate board member has a fiduciary duty to act in the best interest of their company's shareholders. When a party fails to uphold their obligation or duty to another party, it is called a breach of fiduciary duty. The person with the obligation is called the fiduciary, while the person to whom the obligation is owed is called the principal or the beneficiary.
Businesses can easily be affected by human relationships, and if your relationship with your business partner has taken a turn for the worst, you can expect that it will affect your business in the future. If your business partner holds a considerable stake in your business, however, you may face difficulty in removing them from their position. Find out what you can do to end your business relationship.