Shareholder disputes: The good, the bad and the ugly
Abstract: When owners don’t see eye-to-eye about major decisions, it can disrupt business operations and compromise debt service, especially if the parties wind up in court. One way borrowers can help themselves — and their stakeholders — is to implement a valid, comprehensive buy-sell agreement. This article discusses how buy-sells can prevent shareholder disputes and what relevant details to include in a buy-sell agreement. A sidebar identifies potential sources of buyout funding, including life insurance and loan proceeds.