Summary
I Have a Dispute with My Business Partner – What Should I Do?
Disputes between business partners happen more often than you think. When they do, they can threaten the foundation of your business. If you’re facing a disagreement with your co-founder or shareholder, it’s important to act strategically and know your legal options.
At Triangle Legal LLC, a leading provider of Singapore corporate law and advisory services, we help clients navigate shareholder and partnership disputes. We provide clear guidance, keep things private, and focus on resolving issues quickly.
Step 1: Identify the Nature of the Dispute
Start by clarifying exactly what the disagreement is about. Common partnership or shareholder disputes include:
- Differences in business strategy or direction
- Unequal contributions or effort
- Breach of fiduciary duties
- Misuse of company funds or assets
- Exclusion from management decisions
- Disputes over profit distribution or salaries
- Breach of the shareholders’ agreement or company constitution
Understanding the legal and factual basis of the dispute will help guide the next steps.
Step 2: Check Your Shareholders’ Agreement or Company Constitution
Many businesses miss this, but your shareholders’ agreement or company rules likely include ways to resolve disputes. They also cover decision-making powers and what to do if there is a deadlock or a breakdown in the relationship. If you don't have a shareholders' agreement, the Companies Act and common law will apply. This is part of Singapore corporate law. If your agreement doesn't cover certain issues, the same laws will apply.
Step 3: Consider Negotiation or Mediation
Before heading to court, consider whether the dispute can be resolved amicably or through mediation. A quick solution can help maintain the relationship, if it's still possible. It can also prevent damage to your reputation and save on legal costs. At Triangle Legal, we often assist clients by:
- Sending a formal legal letter setting out their position
- Advising on negotiation strategy
- Representing them during mediation or informal discussions
Step 4: Know Your Legal Remedies
If negotiations fail, legal action may be necessary. Potential remedies in a business partner dispute may include:
- An injunction to prevent further harm (e.g., misuse of funds)
- A buy-out of one partner’s shares
- A court order for a winding up of the company
- A claim for breach of fiduciary
In conclusion, while business disputes can be daunting, taking proactive steps and seeking the right legal guidance can lead to a resolution that aligns with your goals. At Triangle Legal LLC, we are committed to supporting you every step of the way, ensuring that you have the resources and knowledge needed to navigate this challenging experience. Contact Triangle Legal LLC for a confidential consultation. We’ll help you protect your interests and move forward with confidence.
