Explosive Franchise Growth Poses Challenges

by John D. Dadakis, Esq.
the firm of Rogers & Wells

Family business issues are permeating the business headlines, frequently because of costly and destructive litigation that had its origins in flawed legal advice rendered to a family business.The fight over the one share control issue in the battle for American Maize Products exemplifies how a distribution from an estate can have lasting effects.The Haft family’s public battle over the Dart Group can only conclude a nightmare for its public shareholders.

The problems that arise are the same, whether the family business is defined as a closely-held, owner-managed, or family-owned business, and in fact pertain to publicly-traded companies with an important presence of family in stock ownership, as well as to strictly private family enterprises. More…

Conflict in the Family Business: Managing Conflict Through Legal Agreements

Conflict in the Family Business:
Managing Conflict Through Legal Agreements

Newsletter
by Robert B. Curran
Whiteford, Taylor & Preston

Disagreements and conflict among owners or managers of closely-held firms can have devastating consequences. A company’s inability to anticipate and resolve internal strife could threaten the very existence of the firm.

In many cases, such conflict can be prevented or resolved through carefully prepared legal agreements.These can direct parties on issues such as corporate governance, establishing and modifying compensation arrangements, circumstances requiring the withdrawal of a participant, and setting the price and terms for purchasing a department participant’s interest. More…