What should I do if my business partner violates our operating agreement?

Begin by reviewing the operating agreement and documenting the conduct that may violate its terms. The agreement may address management authority, voting rights, financial distributions, access to company records, ownership transfers, buyout procedures, and the process for resolving disputes. Emails, meeting records, financial statements, contracts, and other written communications may also help establish what occurred.

Not every disagreement between business owners amounts to a legal breach. An attorney can compare the operating agreement, company records, articles of organization, and applicable Indiana law to determine the rights and responsibilities of each party.

Possible responses may include a written demand, negotiation, mediation, a negotiated ownership buyout, or legal action to enforce the agreement. Depending on the circumstances, a court may award damages, issue an injunction, enforce specific terms, or order another appropriate remedy. Dissolution may be considered in limited situations. Addressing the dispute early can help preserve records, protect company assets, and reduce disruption to the business.