Minnesota Force-Out Actions: Resolving Business Partnership Disputes
Last updated on March 19, 2025
Disputes among business partners and shareholders are not only stressful, they are also disruptive to businesses. Any dispute that erupts within the leadership of a company can be disruptive to business activities, especially one that involves a force-out action. If you’re entangled in such a dispute, legal guidance is critical.
MKT Law, founded by attorney Mark K. Thompson, offers experienced legal support to businesses in Minneapolis and the greater Twin Cities metro area. With over 25 years of experience, attorney Thompson is dedicated to guiding clients through complex business litigation challenges and conflicts.
What Are Some Of The Common Tactics To Force-Out A Stakeholder In Minnesota?
Force-out actions often involve various tactics aimed at pushing a stakeholder out of a business. These can include:
- Dilution of shares: Issuing additional shares of stock and equity dilution, reduces the target stakeholder’s ownership percentage.
- Exclusion from meetings: Preventing a shareholder from attending important meetings or decision-making processes, denies them their right to participate in their leadership role.
- Withholding information: Not providing essential financial or operational information to a shareholder can actively force them out.
- Unfair employment practices: Changing roles or responsibilities to undermine the shareholder’s position can indicate an attempt to force-out a shareholder.
Sometimes squeeze-out tactics are subtle. Litigation can provide shareholder rights protection against majority shareholder abuse. An experienced business litigator can provide invaluable legal guidance if you are entrenched in actions that might indicate a shareholder force-out.
What Legal Strategies Can Prevent A Force-Out Action?
Fortunately, there are several different legal strategies that can counteract force-out actions. These include:
- Filing for injunctive relief: Seeking an injunction can temporarily halt any suspicious actions and behaviors that may harm a shareholder’s interests.
- Shareholder derivative lawsuits: Derivative lawsuits allow stakeholders to sue on behalf of the company if those in control are harming the business.
- Breach of fiduciary duty claims: If business partners are not acting in the best interest of the company, a breach of fiduciary duty claim can hold them accountable.
- Negotiating buy-out agreements: A buy-out agreement after a business valuation to determine a fair market value can help disputing parties reach a fair agreement to buy out the stakeholder’s shares, often preventing prolonged disputes and preserving the best interests of the company.
Attorney Thompson has more than 20 years of experience with business litigation and negotiating resolutions to shareholder disputes and business partnership disagreements. If you suspect that you are the target of a shareholder force-out, he can help protect your shareholder rights and negotiate shareholder remedies.
Consult A Minneapolis Shareholder Force-Out Attorney
If you need a business litigation lawyer to handle a force-out dispute, reach out to MKT Law. Call 612-217-2913 or send a message through the firm’s website to inquire about availability and schedule an appointment.