Frequently Asked Questions (FAQs) on Business & Corporate Disputes
If you are a business owner or shareholder and are experiencing a dispute within your business or with another entity, it is crucial that you have an experienced business attorney who both understands your business and is experienced in resolving the controversy through mediation or litigation.
Read below for more information regarding business and corporate disputes.
What is a corporate dissolution or termination? When a corporation is no longer doing business and doesn’t plan to be in the future, often it makes sense to dissolve or terminate the entity. There is a process which must be followed in order to prevent debts or liabilities of the corporation from becoming those of others, such as shareholders.
What has to be filed with the state when dissolving or terminating a corporation? There are forms by which the state will recognize the formalities of dissolution having been followed by a corporation.
What happens if I don’t formally dissolve a corporation? If a corporation is not properly dissolved, shareholders could be exposed to personal liabilities for debts and liabilities of the corporation.
What are the Rights of the Minority Owner? Minority shareholders cannot be mistreated by those who together own a majority of the outstanding shares of a corporation without their being exposed to recourse from the minority shareholders. Majority shareholders must follow the corporate bylaws and Alabama corporate law in managing the affairs of the corporation. They must also ensure that the corporation takes actions which are in the best interest of the business, not the best interests of the majority shareholders.
What should I do if someone files a lawsuit against my company? The first thing that a corporate officer or shareholder should do if the company is sued is to make their insurance agent aware of the complaint so that any and all potential liability insurers are put on notice of the claims. At the same time, the corporation should consult an experienced attorney who can advise on the next steps to be taken.
What is the best way to resolve a contract dispute? A contract is simply an agreement between two or more parties. If a dispute arises between the parties, the first step is to try to resolve the dispute between the parties by agreement. An experienced attorney can advise on the likely results and costs associated with a lawsuit to resolve the dispute. This can help you make an informed decision when evaluating potential resolution options.
Are there alternatives to going to court to resolve a business dispute? There are many alternatives to going to court to resolve a business dispute, such as negotiation, mediation, and arbitration. An experienced business attorney can help evaluate the different alternatives and can advise and represent you through the process.
What should I do if a class-action lawsuit has been filed against my business? If a class action lawsuit is filed against your company, you should seek the advice of experienced litigation counsel.
What should my company do if it is accused of unfair trade practices? If your company is accused of an unfair trade practice, you should gather all the relevant facts and seek the advice and counsel of an attorney experienced in this area soon as possible.
How should companies respond to an internal corporate or partnership dispute? If there is a dispute between the different owners or partners in a business venture, steps should be taken to ensure that the business continues such that neither owners or partner is harmed as a result of the dispute. Meanwhile, the owners or partners should attempt to resolve their dispute.
Should my company file a lawsuit if our business has been harmed? A corporation, just like an individual, has the right to file suit if it is harmed or damages as a result of the acts or omissions of another, whether another individual or corporation.
Can former employers stop me working for a competitor? In Alabama, a former employer can prevent you from working for a competitor in certain situations, such as if you signed a noncompete agreement. But, noncompete agreements are not always enforceable or not enforceable to the extent written.
Can I sue a financial advisor? There are situations where a financial advisor can be sued. A thorough review of the agreements concerning the relationship with a financial advisor is important to an evaluation of any claim against a financial advisor.
Can I sue for breach of verbal contract? Not all contracts have to be in writing to be enforceable. The facts and circumstances will dictate when a contract must be in writing to be enforceable.
Can I sue when a business interferes with my clients? There are situations where interference with your business relationships are actionable.
What is a complex business dispute? Not all business disputes are complex. But, many are. Complex business disputes involve many different claims, accounting issues, paperwork, legal issues, witnesses, corporate law, shareholder’s rights, corporate formalities, corporate filings, and often a great deal of money. Not all lawyers are experienced with complex business disputes. We are.