It is important for a business to address disputes with shareholders or investors. This is due to the fact that it might harm a business’s image, cause operational disruptions, and even result in legal action. The following steps can and should be used by a company to resolve these conflicts:

The first step can be to create well-specified governance structures. This will include businesses that should have shareholder agreements, corporate governance regulations, and bylaws that are all well-specified in a certain document. These documents must aim to specify the rights and obligations of shareholders as well as the dispute resolution procedures.

The second best step is to maintain transparency with your shareholders/investors. Holding regular communication about financial performance as well as business strategies can aid in making major decisions. This can help shareholders build trust and reduce misunderstandings between the board and investors.