Shareholder Disputes: When Things Get Ugly

Welcome back.  This is the third, and final, post in my three-part series on operating agreements.  You can read Part I here and Part II here.  So far, we've discussed why you need an operating agreement, and what that operating agreement should say.  Now we're going to discuss what to do when things get ugly.

Maybe one of your members passed away.  Maybe you lost a big client.  Maybe your member/partner wants to put his wife or son on the payroll, is causing the business to purchase supplies from a business in which your they hold an interest, or is running personal expenses through the business.  Maybe a key vendor has raised its rates, resulting in a significant impact on the bottom line.