Avoiding business disputes involves well planned business strategies and planning. There are specific steps that are recommended, such as having proper corporate documents, defining all parties’ roles and responsibilities in all corporate documents, carefully amending corporate documents and agreements according to new laws and regulations, as well as what the parties wish to accomplish through their business agreements, executing employment agreements with owners, complying with the documented corporate formalities, acting in good faith when exercising business judgment, not misusing business assets, avoiding transactions that create conflicts of interest, such as interested parties and not arms’ length transactions, obtaining consent for any interested-party transactions, defining majority and minority interest holders and outlining their specific capital investments and percent stake interests and voting rights, and just being transparent and documenting actions and transactions clearly and thoroughly. This is not an all-inclusive list, but it certainly provides a good outline of steps to aid in avoiding major disputes and issues that can lead to litigation.
Learn more about business and commercial disputes here.
Contact the business attorneys in Ann Arbor at Pear Sperling Eggan & Daniels, P.C. today, and let us help guide you through business and commercial legal disputes in Michigan. Please contact us at 734-665-4441 or fill out our contact form to schedule an initial consultation.
