When a partnership, LLC, or corporate dispute occurs, a party must know what remedies exist to resolve it. The remedies available to a court are expansive. The court can develop a tailored solution to the business dispute. Courts consider the expectations of shareholders or members at the time the company was formed and throughout the its existence.
The simplest remedy a court can offer is setting aside or altering any action taken by a corporation. When a specific action is not the root of the dispute, the court may amend and restate the governing documents by striking and altering provisions in the articles of incorporation, by-laws, or operating agreement.
If the court believes the business leaders are the source of disputes, the court can remove or appoint any individual as director of the corporation, appoint a provisional director, or receiver. Alternatively, when the court believes the parties can reach their own resolution in a dispute, it can order mandatory mediation or require another alternative dispute resolution to obtain a compromise.
When these common remedies are insufficient, the court can order more extreme remedies. For instance, the court can adjust the ownership structure. This is generally accomplished by ordering shareholders of a corporation to purchase shares from other shareholders at a fair value determined by the court, providing the court a great deal of power in valuing and organizing the corporation. Similarly, an LLC member can be dissociated. When no other remedies are available, the court can order the dissolution of a business. 805 ILCS 180/30-1(a)(5); 805 ILCS 5/12.50(a), 12/55(a).
If you are involved in a business dispute and want to know what remedies are available to you, please don’t hesitate to call us at (312) 223-1699 to speak with one of our experienced attorneys or email Thomas E. Patterson at email@example.com.