Ask A Cannabis Lawyer: Green Light Law Group Talks Partnership Disputes
Or, if you’d prefer to read up on the topic...
“When people decide to go into business together, everyone is usually getting along well and feeling very positive about the future and the success of their new company. The promise of a lucrative venture in an exciting new industry is enough to make anyone happy. With the many moving parts involved in setting up a new marijuana business, most new business owners are not concerned about governing documents. Most marijuana business owners are not thinking about what happens if they start to argue and can no longer operate the business together, or if one owner wants to sell her interest in the business.
We have seen numerous disputes between owners of marijuana businesses who leaped into business together without thinking about these issues. We often see operating agreements for limited liability companies that have been downloaded from the internet. These agreements have conflicting provisions, are not tailored to the marijuana industry, or simply do not make any sense. Without properly drafted governing documents, it is extremely difficult to determine the rights of the owners, transfer ownership interests, or unwind the company. While the Oregon statutes provide guidance, the issues are further complicated when the owners have made distinct contributions to the business. For example, one owner contributes the capital and the other sweat equity.
As these business disputes seem to be on the rise, here are some tips that may help you avoid them...”
Read Green Light Law Group’s tips via there blog HERE.