Are you getting the best counsel? Who is looking out for you and your best interest? If you are involved in a multi-party business transaction, the lawyer involved may or may not be looking out for you and your economic interest. Read on to learn more.
Previously we discussed in our blogs about business divorce and we pointed to some of the most common situations that lead to a business break-up, including divorce, disability, death, and disagreement. In addition, we discussed what business owners can do to protect their businesses in the event of a business breakup.
Still, in other blogs, we looked at real life situations involving such events and stressed the importance of advance planning and well-written “business pre-nuptials.” We have seen an increasing number of business owners thinking ahead and pursuing legal advice on these issues. Life changes too much too fast to keep both (or more) owners in long-term alignment. The more prepared they are, the better they can protect their businesses.
However, what many business owners do not understand in multi-party situations is the complex relationship between the attorney and the clients. Many lawyers seem to represent all owners or partners when in most situations, each client should be getting independent legal advice from an attorney looking out for them or at least understand the issue.
In this blog series, we will discuss the dangers of joint representation, conflict of interest, and the need to obtain independent legal counsel in the context of a multi-owner business partnership.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity. Freeimages.com/Photographer Bogdan Lungu.
About the Author
Shawn McBride — R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride or call (214) 418-0258.
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