According to the U.S. Small Business Administration, about 270,534 small businesses operate in Mississippi. They are important to the smooth functioning of the state’s economy.
Of course, conflicts can arise among business owners in Mississippi. Understanding the common types of ownership disputes is important for entrepreneurs seeking to navigate the challenges of owning a business with someone else.
Shareholder disputes can arise in businesses with a corporation structure. For example, disagreements over dividends, where the company is going or its finances may escalate quickly.
Partnerships, whether general or limited, can face disputes. They may be over management responsibilities, profit-sharing or strategic decisions. These conflicts often hinge on the interpretation of partnership agreements. Reviewing partnership documents and talking openly can resolve such disputes and put the business relationship back in a good place.
Intellectual property disputes
Disputes may arise over the use of trademarks, copyrights or trade secrets. Businesses must protect their intellectual property rights.
Workplace conflicts in Mississippi can spill over into ownership disputes. This may particularly be true when key employees are part of the issue. Noncompete agreements, confidentiality breaches or unfair competition may trigger ownership conflicts. Clear employment contracts and proactive human resource management can mitigate the risk.
When owners dissolve a business, disagreements may occur. For example, the owners might not agree on the distribution of assets and liabilities.
Disputes are inevitable in the business world, even among owners. Addressing these disputes quickly helps maintain a healthy business environment.