Resolving Disputes Over Business Decisions in Closely Held Entities
When the board of directors disapproves of management decisions in a major corporation, the solution is fairly simple: fire the erring executives and bring in fresh blood. This option is seldom available in such business entities as family corporations, professional practice groups, real estate investment LLCs, or small contracting businesses. In smaller companies, the lines between ownership and management tend to get blurred, and it is difficult to get rid of an ineffective manager when he or she also holds a significant equity stake in the enterprise.
If you or your ownership group need legal advice about the most effective approaches to problems concerning management decisions in closely held business entities, contact an experienced Florida business dispute attorney at Grumer & Macaluso, P.A., in Fort Lauderdale. We help small businesses achieve sound resolutions to problems with unsatisfactory management practices through negotiation, mediation, and corporate or partnership litigation.
Examples of the kinds of situations we can address include:
- Unauthorized and unratified management decisions
- Management practices that expose the company and its principals to civil or regulatory liability
- Disputes as to the terms of a noncompete agreement or non solicitation covenant when an investor actively engaged with the business leaves the equity group
- Problems following the purchase of a business involving a continuing relationship with previous owners actively involved with operations
- Standoffs between board factions as to hiring, firing or operational decisions
- Misappropriation of trade secrets, customer lists or other proprietary information by a departing manager
- Severance and buyout negotiations when an active investor leaves the business
Ideally, every business bigger than a sole proprietorship has detailed processes in place for orderly management, the resolution of disputes, and the divestiture of owner-managers who no longer fit into a company's current vision. Unfortunately, few companies can anticipate the full range of problems that can emerge after initial formation. Even businesses that have such processes in place often have little experience using them, or a great deal of experience with ignoring them.
Fort Lauderdale Business Management Disputes Lawyers: Call 888-587-5549
Find out how the practical advice of experienced South Florida business dispute attorneys can help find useful solutions to the problems that can come up between investors and managers, especially when the same individuals wear both hats. Contact Grumer & Macaluso in Fort Lauderdale for additional information.
