Whether it is a small one-person operation or a large public corporation, the people who own a business are known as the shareholders. The Houston Chronicle points out that shareholders are both directly and indirectly involved in their company’s operations. Consequently, shareholder disputes may disrupt not only how a business functions, but also its bottom line. However, there are things that you may do to help avoid shareholder disputes.
Perhaps the most important thing that you can do is to ensure you have a shareholder agreement in place. This type of legal document will specify how your business will be run, including how day to day matters will be handled and how important decisions will be made. Additionally, shareholder agreements may include details stipulating how disputes will be dealt with.