Business partnership & Litigation

by a searcher

1 year ago

How do you handle business partnership, when one of the partners gets involved in litigation or legal cases unrelated to the business. 

Does it matter if partner is minority vs majority shareholder ? what provisions can help protect the business entity in case if it comes to that. 

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searcher from Rochester Institute of Technology

I am not a lawyer, this is not legal advice (just my opinion) but this sounds like a classic question about exposure. If their business interest is as an individual and your partner is found to be at fault, I would think their business interest could be exposed (considered as part of a judgement). whereas if their interest was through an LLC or other non-individual entity, it would create a shield or some distancing between him and the entity's assets. Def check with an attorney.

1 year ago | like reply | 0 likes

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