Experience. Reputation. Results.

  1. Home
  2.  | 
  3. Business Organizations
  4.  | Types of business disputes and solutions

Types of business disputes and solutions

On Behalf of | Jun 14, 2023 | Business Organizations

Running a business comes with many daily challenges. Those challenges increase when a company has shareholders.

While one hopes everyone can get along and have the same outlook on the future of the company, different personalities with differing opinions frequently lead to disputes. Since money still ranks as the bottom line, even a small dispute can turn into a damaging problem for a company.

Common reasons for a dispute

Whether a small or large company, a host of situations may lead to a disgruntled shareholder or business owner. Even a small miscommunication has the potential to create a high-stress situation. Some of the most common reasons for a dispute include:

  • Compensation inequalities among shareholders
  • Breach of contract
  • Intellectual property infringement
  • Gross negligence

While these often top the list, a number of other reasons may also contribute to dispute. Considering that a person or persons have deadlocked on a topic, it makes finding a solution challenging.

3. Potential dispute solutions

Regardless of the reason, communication remains the key to figuring out the core cause of the issue. In many cases, a simple discussion may clear the air. Unfortunately, especially when it involves high stakes, the parties involved simply cannot reach an agreement. When that happens, other ways to resolve the situation may include involving a mediator, offering a buyout or filing a lawsuit.

If the best solution involves legal action, it means added complexities. Making preparations, such as having a USPAP-certified independent valuation completed and getting all documentation in order, may help ease the process.