Corporate Governance Law / Shareholder Relations
Every small business must comply with the terms of state corporate law and its Articles of Incorporation and Bylaws (for a corporation), or Articles of Organization and an Operating Agreement (for an LLC).
From the number of members on a company’s Board of Directors, to the timing and location of board meetings, and when and how shareholders vote, “corporate governance” is an often-forgotten but critically important part of running a business.
We have seen long-term neglect of corporate governance procedures ripen into open hostility among officers, directors, and shareholders. Litigation sometimes results, endangering the business mission and profits.
Your goal is to grow your business over the long term and that means nurturing (or mending) relationships with your partners, peers, or colleagues. While the right legal counsel is essential, it helps when the company’s lawyer also has a keen understanding of human nature.