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The best advice I can give business owners to avoid shareholder disputes is the shareholder disputes are always the pink elephant in the room. The shareholders that own the majority shares that want to exclude the other shareholder rather than try to resolve that dispute early on and putting it up on the table where everybody can see it and everybody knows it there, they avoid the discussion altogether and just exclude the minority shareholder. That’s just a bad idea. There are all kinds of things that you can do early on before you exclude a shareholder for the firm to make sure that you don’t have a big expensive legal fight once that happens.
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Texas Business Litigation Attorney, Jeff Springer, gives advice to business owners on avoiding disputes with shareholders.