Two individuals establish a small business and contribute different amounts of capital and time. Their written arrangements do not clearly address decision-making deadlocks or the process for a partner wishing to leave. A disagreement arises over expenditure, access to financial records and the direction of the business.

The people and events in this scenario are fictional.

• What legal structure governs the business?

• What do the partnership, shareholder or other governing documents say?

• What information and accounting records should be reviewed?

• What procedures exist for resolving deadlocks or an exit?

The available options depend on the business structure, governing documents, applicable law and the evidence concerning the parties’ contributions and decisions. The parties should distinguish personal disagreement from questions of authority, accounting, contractual obligations and the proper management of business assets.

• Collect the governing documents and current financial records.

• Arrange a structured meeting with an agenda and written minutes.

• Consider independent accounting assistance or mediation.

• Obtain advice before transferring assets, excluding a partner or dissolving the venture.

Business owners should document contributions, responsibilities, approval processes, access to records, dispute procedures and exit arrangements at the outset. Clear governance can prevent disagreements from threatening business continuity.