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Shareholder Disputes in Pennsylvania

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Nov 28, 2018

Does Your Governing Document Contain an Arbitration Provision?

Clients often come in itching to file suit against their fellow shareholders.  Often,  however, their shareholder or operating agreement contains an arbitration provision.  Many clients are confused by this provision.  So, what is arbitration, and do you want to include an arbitration provision in your shareholder or operating agreement?» Read More

Oct 29, 2018

Should You Mediate Your Shareholder Dispute?

Many clients who come in to discuss their dispute know about litigation, but are unaware of mediation.  So, what is mediation and can it help you resolve your dispute?

Mediation is a form of alternative dispute resolution where a third party, the mediator, helps the parties to resolve their dispute. » Read More

Oct 24, 2018

How to Prepare for Litigation Avoidance

I wrote an article for this week’s Lehigh Valley Business discussing how family-owned and -operated businesses need to take necessary steps to avoid litigation.

As a reader of this blog, you know that shareholder oppression is a frequent issue, and all shareholders need to understand how being proactive can protect everyone in the long run. » Read More

Sep 17, 2018

Learn the Numbers

No matter how many cases I see, I remain surprised by how many shareholders in closely-held companies (those in Pennsylvania with less than 30 shareholders) have very little idea about the monetary performance and practice of their businesses.  For example, in a recent case, physician shareholders relied entirely on their outside management firm to control essentially all aspects of physician compensation. » Read More

Aug 15, 2018

The Papa of All Shareholder Disputes

If you haven’t already heard, Papa John’s founder, John Schnatter, resigned from the company after using a racial slur.  But Schnatter is not walking away that easy, as he is still the largest shareholder in the company.  He has filed a complaint against the company seeking access to documents that he alleges show inappropriate behavior and a breach of fiduciary duty by the board of directors. » Read More

Aug 07, 2018

The Importance of a Valuation Expert

Not surprisingly, the value of a business during “shareholder divorce litigation” is hotly contested because many shareholders want to be bought out.  But is the litigation “worth it”?  For example, if your interest is worth $50,000 you may not want to spend $35,000 in litigation costs and fees. » Read More

Jun 18, 2018

LLC Members Do Owe Each Other Duties

According to a recent decision by the Pennsylvania Superior Court, members in a member-managed limited liability company (LLC) do owe duties to other members when they engage in wrongful conduct detrimental to other members.  Until this decision, there was a lack of clarity regarding whether majority members could oppress a minority member. » Read More

Jun 04, 2018

Put it in Writing!

Too often, businesses that began on a handshake or were amended on the basis of verbal agreements end up in litigation. This lack of documentation makes litigation more cumbersome, uncertain, and expensive.  Therefore, to prevent future problems, it is well worth investing in an attorney who can prepare the appropriate shareholders’ agreement.» Read More

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