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What can you do if your business partner won’t follow the terms of your business agreement?
Welcome and thanks for joining me. I’m Jim Bendell, an attorney practicing in Coeur d'Alene,
Idaho. If your business partner won’t follow the terms of the agreement, the first thing
you need to know is this is a partnership or is it a corporation? Because your options
and your remedies differ depending on which category it falls into. If it’s a partnership,
you may have to dissolve the partnership or have a judge do so. Or get a job to enforce
the terms of the partnership. If it’s a corporation, you may have to exercise what’s
known as minority rights of shareholders against an oppressive majority. What does that mean?
Well, if you own 20 or 30% of the stock and somebody else (or a group of people) own 70%,
the law does not just let them run rough shot over your rights. You can’t be frozen out
of your rights of the corporation. What are your options? Well, first of all there’s
negotiated settlement. Either sitting down with your partner and working it out or going
before a trained mediator who will try and work with both parties to try and settle the
case. Other options are going to court to enforce your rights. More expensive, but sometimes
necessary if people dig their heels in. Now, you can find out your rights and responsibilities
by talking to an attorney who understands Idaho corporate and partnership law. Why am
I telling you this? Well, if you’re watching this it’s because you have questions about
business agreements. These are the types of questions I answer every day in my law practice.
Here’s what I’d like you to do next. Pick up the phone and call me and I’ll answer
these and other questions. You can reach me at 208-665-4600. I’m Jim Bendell and thank
you for watching.