ENGLISH 中文
phone email facebook linkedin wechat whatsapp

How to resolve partnership or shareholders dispute

Thursday 9 April 2015

In business, people often work together to contribute skills, experience, and capital. They can form a partnership or a company.

Whether it is a partnership or a company, it is important to discuss with the people you are going to work with the following issues:

It is important to set out what you agree in an agreement. If you do not have an agreement, these issues may cause conflict and affects the stability of the business.

If someone within the group does something against the interest of the group, there are legal remedies available depending on whether it is a partnership or a company. However, taking legal action is always expensive, so the best thing to do is to have an agreement about these important aspects at the beginning.

In my experience, in small businesses where there are fundamental differences between the partners or shareholders, someone will end up leaving the company. Having a pre-agreed way of valuing partnership interest or share value is important to provide a fair process to both sides. Otherwise, it will be left to whoever has the most bargaining power at the time.

If you require legal advice, contact Teresa Chan at Teresa Chan Law Limited, Level 3, Westpac Building, 106 George Street, Dunedin 9016, ph. 477 1069, or email teresa@tchanlaw.co.nz  If you are a Mandarin speaker, please ring Jack Liu at (021) 0233 1168.

9 April 2015                                                                                                         

Note: The information in this article is general only. You should seek advice for specific situations.

KEYWORDS: partnership, agreement, company, roles
Dunedin Shanghai Association property law section ADLS