When you form a business venture with another person, you doubtlessly hold out high hopes that the collaboration will be fruitful and rewarding for all. Unfortunately, that does not always happen. In real life, sometimes relationships sour and disputes arise. When they do, it is important to make sure that you have an experienced Georgia business lawyer on your side to protect your commercial interests and rights.
One example of a business entity whose shareholders ended up in litigation was a pair of North Georgia dermatologic surgeons who formed a practice together. At some point after problems erupted, one doctor (the president) threw the other (the vice president) out of the practice. This meant removing him not only as a employee but as an officer and director of the practice as well. Both doctors were equal shareholders in the practice. The expelled doctor took two steps: he formed his own practice, and he sued for being thrown out of the original practice.
The expelled doctor won his lawsuit, and the court ordered him reinstated as an employee, as well as the vice-president, secretary, and treasurer of the practice. That case went to the Georgia Court of Appeals, and the appellate court upheld the lower court’s decision because it decided that the action was improper. (One doctor threw out the other when only the practice’s board of directors could properly take such an action.)