Over time, it’s common for small business officers – the president, vice president, secretary, or treasurer – or members of the board of directors, to disagree on key business decisions. Sometimes, these disagreements ripen into open hostility as they did for !mpact Makers. Whether they know it or not, these small business leaders are in treacherous waters that often ripen into litigation and can include personal liability for business decisions.
How can you work through these arguments without violating Virginia law or the company’s Articles or Bylaws?
Can a disruptive officer or director be removed or fired? How can officers or directors reduce risks to their personal liability?
Family-owned small businesses are common. Shareholders often span several generations. Some shareholders may work for the family business. Others may be disengaged and except for cashing the quarterly dividend check, they may not be paying attention.
Over time, rifts emerge among shareholder factions as those engaged in running the business resent shareholders who merely sit back and collect a share of profits. The disengaged shareholders are grumbling about some recent business decisions that they don’t understand. The seeds of a costly and potentially ruinous lawsuit have been planted.
Can they work through these issues and get back on track before litigation kills the Golden Goose?
Dunlap Law’s attorneys understand these scenarios because we’ve been there with our small business clients. We can help.
