One of the most common causes of business disputes is failing to create a partnership or shareholder agreement at the start of your business venture.
While you may get along really well with your business partners, it’s important that you have a frank discussion from the outset to ensure that you know exactly how your business will be run, including:
The rights and responsibilities of each partner
Meeting and voting procedures
How disagreements are to be resolved
What happens on the sale of the business
What happens if new partners are added
Division of profits
The death of a partner
Creating an agreement from the outset is an effective tool at minimizing disputes and ensuring that you have a healthy and long-lived business relationship.
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