Partnership and Shareholder Disputes in Michigan
When conflict erupts between business partners or shareholders, the damage can spread quickly—profits suffer, trust collapses, and the company’s future is put at risk. Samouris Law Firm helps Michigan business owners resolve internal disputes with clarity, discretion, and decisive action.
When Business Relationships Break Down
Partnership and shareholder conflicts often involve more than personality clashes. They usually stem from money, control, or broken promises. Common situations include:
- Disputes over profit distribution or compensation
- One partner failing to contribute while benefiting financially
- Misuse or diversion of company funds
- Disagreements about business direction or major decisions
- Minority owners being excluded from management or dividends
The need to remove a partner or dissolve the business
Left unresolved, these issues can cripple an otherwise successful company.
Fiduciary Duties and Owner Rights Under Michigan Law
Business partners and company owners owe fiduciary duties to one another and to the entity. These duties generally include loyalty, honesty, and acting in the best interest of the business. When a partner or controlling shareholder violates those duties—through self-dealing, secrecy, or oppression—Michigan law provides remedies.
In closely held corporations, minority shareholders may have protections against unfair treatment, including being frozen out of decisions or denied fair returns on their investment. Understanding how these laws apply is critical to protecting your position.
Strategic Resolution—Negotiation First, Litigation When Needed
Not every dispute should end in court. When possible, matters are approached with an eye toward efficient resolution, including:
01
Negotiation or mediation to preserve value
02
Structured buyouts or ownership restructuring
03
Enforcing or interpreting partnership or shareholder agreements
When negotiation fails or urgent action is required, litigation is pursued decisively. Courts can intervene to stop harmful conduct, enforce agreements, or order appropriate remedies to protect the business.
Handling Financial and Control Disputes
Partnership conflicts often require careful review of financial records, operating agreements, and decision-making authority. Representation may involve working with accountants or other professionals to uncover improper conduct, clarify ownership rights, and present a clear picture of what’s happening inside the business.
The goal is always to reach an outcome that protects your investment—whether that means regaining control, securing a fair buyout, or exiting the business on reasonable terms.
Serving Business Owners Across Michigan
Business owners from Lansing, East Lansing, Ann Arbor, Detroit, and throughout Michigan rely on practical guidance grounded in state law and local court practice. Representation is available statewide, with discretion and responsiveness throughout the process.
Related Business Litigation Services
Many partnership disputes overlap with other business conflicts. These resources may also be helpful:
FREQUENTLY ASKED QUESTIONS
Common Questions About Partnership Disputes
What if my business partner is cheating me?
Legal options may include enforcing fiduciary duties, seeking damages, or court intervention to stop misconduct.
Can a partner be removed from a business in Michigan?
Possibly. The answer depends on governing documents and the nature of the conduct involved.
What rights do minority shareholders have?
Michigan law may protect minority owners from oppressive actions by those in control.
Should I wait before contacting a lawyer?
Delays can worsen financial harm. Early advice often expands your options.
Let’s Get Started
Resolve the Conflict Before It Destroys the Business
Internal disputes don’t have to end in chaos—but they do require decisive action. Samouris Law Firm helps Michigan partners and shareholders protect their interests, pursue fair outcomes, and bring stability back to their business.
Call Now: (517) 347-7047
