Many Georgia residents appreciate the value of owning a family business. Family businesses leave a legacy for future generations and offer a sense of pride and good reputation to the members. Running a family business comes with challenges, such as minor disagreements to full-blown arguments, that can destroy the company and the relationship.
Most family members will set aside their differences to do what’s best for the business. When a resolution is not achievable among family members, then there are steps they can take to handle a business dispute.
Handling business disputes within the family
When conflicts arise that are more than just minor disagreements without an agreeable end, family members can use other mitigation methods, such as:
• Family councils, advisory boards, or off-site family meetings
• Communication fostering among family members
• A family business mediator
When family members agree to mediation tools to resolve conflicts, they protect the interests of the business and the family. Business law is a tool that resolves the dispute by settling issues that may violate state, federal, or local ordinances.
Using a mediator to resolve family business disputes
A mediator should be an outsider who is unbiased but experienced in conflict resolution. This person should know business law, brings confidence to all sides, and be an excellent listener and problem-solver. The mediator should offer creative solutions that benefit the needs of the business and support the family. Family disputes can get intense, so the mediator should also be an effective de-escalation expert.
Unresolved family business disputes may result in a dissolution of the business in its current state. Working with experts will help dissolve the partnership fairly and equitably.