Legal Question in Business Law in Connecticut

Litigating the reorganization of a family business

For an established family business in Connecticut that is trying to reorganize (split off and buy out of some family partners, assign use of the family business name, and redistribute equity), when mediation, non-binding arbitration and binding arbitration have not succeeded or are not wanted, how can the reorganization be litigated (and in which court)?


Asked on 9/04/99, 7:55 am

1 Answer from Attorneys
Patrick Begos Begos & Horgan, LLP

Re: Litigating the reorganization of a family business

It really depends. If your business is incorporated, then the corporate laws of the state of incorporation would govern the circumstances under which, and the procedure by which, one or more shareholders might be able to force a liquidation. This could accomplish your "reorganization" indirectly.

A majority of the shareholders might be able to force a merger or sale of corporate assets, which would accomplish the same thing.

You might also have a shareholders' agreement which expands upon or limits any of these rights.

If the business is not incorporated (i.e. is a partnership)then the partnership laws and partnership agreement will govern the circumstances under which, and procedures by which, a liquidation or reorganization can be accomplished.

The real answer is that it is impossible to answer your question without a lot more detail. (It's sort of like asking a doctor over the phone how to treat "cancer".) It all depends on the details.

If you would like to discuss this in more detail, please feel free to call (203-226-9990) or email me privately ([email protected])

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Answered on 9/08/99, 4:56 pm


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