10 Tips for Resolving a Partnership or Shareholder Dispute

Disputes can happen in any business, but partnership and shareholder disputes can be particularly challenging. They can cause stress, lost productivity, and even the dissolution of the company. Fortunately, there are ways to resolve these disputes effectively and amicably. Here are ten tips for resolving partnership or shareholder disputes.

1. Communicate openly and honestly

Open and honest communication is key to resolving disputes. Schedule regular meetings to discuss issues that arise and listen to each other’s concerns. Be open to compromise and try to find a solution for all parties involved.

2. Consult a professional Houston business attorney

Hiring a professional Houston business attorney, like those at Vethan Law Firm, can provide valuable guidance and advice during partnership or shareholder disputes. They can help you understand your rights, responsibilities, and options and provide legal representation.

3. Utilize mediation or arbitration

Mediation and arbitration are alternative dispute resolution methods that can help you reach an agreement without going to court. In mediation, a neutral third party enables you to negotiate a resolution, while in arbitration, a neutral third party makes a binding decision after hearing both sides of the dispute. Both methods can save time, money, and stress compared to litigation.

4. Develop a transparent partnership or shareholder agreement

Having a well-drafted partnership or shareholder agreement in place can help prevent disputes from arising in the first place. The agreement should clearly outline each partner’s or shareholder’s responsibilities, ownership percentages, decision-making processes, and dispute-resolution procedures.

5. Focus on the best interests of the business

It’s essential to keep the business’s best interests in mind when resolving disputes. Remember that the ultimate goal is to find a solution that allows the company to continue operating successfully and profitably.

6. Address issues early on

Keep minor issues from festering and growing into bigger problems. Address disputes and concerns as soon as they arise to prevent them from escalating and damaging the business relationship.

7. Seek help with business-to-business litigation

If your dispute involves another business, you may need a reputable company helping with business-to-business litigation. They can provide expert guidance and representation, helping you protect your business interests and resolve disputes efficiently.

8. Be prepared for a breach of contract 

When a breach of contract happens, this causes partnership or shareholder disputes. If you find yourself in this situation, it’s crucial to understand your rights and options. Consult a legal professional to help you navigate the complex legal landscape when a breach of contract occurs.

9. Consider buyouts or restructuring

In some cases, the best solution for resolving a partnership or shareholder dispute may involve a buyout or restructuring of the company. This can provide a fresh start for the business and the remaining partners or shareholders, allowing them to move forward without the ongoing conflict.

10. Learn from the experience

After resolving a partnership or shareholder dispute, take the time to reflect on what caused the issue and how it was resolved. Use this knowledge to improve your business practices and relationships moving forward, preventing similar disputes from happening in the future.


Partnership and shareholder disputes can be challenging and stressful, but with open communication, professional guidance, and a focus on the best interests of the business, they can often be resolved amicably. By following these ten tips, you can work towards a resolution that allows your business to continue thriving and maintain healthy relationships with your partners or shareholders. Remember, seeking help from experienced legal professionals can make a significant difference in navigating disputes and protecting your business interests.

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