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Corporate9 April 20269 min read
Shareholder disputes: when to litigate, when to negotiate
A framework for closely-held companies facing internal conflict — and the warning signs that mean you should call counsel today.
Most shareholder disputes don't belong in court. They belong in a properly mediated conversation with a clear-eyed view of the company's articles, the shareholders' agreement, and the realistic outside options for each party.
But some do. This article lays out the four signals I use to triage a dispute:
- Deadlock at the board level.
- Allegations of unfair prejudice.
- Asset stripping.
- Breakdown of trust between founders.
If you see two of these together, you are probably already past the point where mediation alone will resolve it.
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