Understand the causes and consequences of deadlocks and gain a comprehensive overview of how careful structuring and drafting can prevent one.
Drafters of operating agreements often overlook the critical importance of drafting with a focus on management, voting, and transfer provisions. Failing to address these elements can result in a deadlock, jeopardizing the company’s future and relationships among members. A deadlock can lead to lengthy and expensive litigation or arbitration and, in some cases, may result in the dissolution of the company.
This presentation will cover the causes and consequences of deadlocks and provide a comprehensive overview of how careful structuring and drafting can prevent one. Attendees will gain practical insights into resolving deadlocks efficiently, including various strategies tailored to different scenarios. This webinar is ideal for business owners and legal professionals drafting or advising on operating agreements.
Learning Objectives
- You will be able to discuss the fundamentals for deadlock and operating agreements.
- You will be able to identify key terms and provisions within operating agreements.
- You will be able to explain strategies to prevent deadlock through proper drafting.
- You will be able to describe techniques for resolving deadlock situations.
Agenda
Understanding Deadlock and Operating Agreements
- LLCs vs. Other Business Entities
- Key Terms of Operating Agreements
- What Constitutes a Deadlock
- Common Examples of Deadlock Situations
Preventing Deadlock Through Proper Drafting
- Management Terms
- Voting Terms
- Restrictions on Transfer of Interests
- Other Terms
Effective Deadlock Resolution
- Tiebreakers and Conflict Resolution Process
- Buy-Sell Terms
- Put or Call Options
- Use of a Casting Vote
- Partition or Sale of Company
- Arbitration
- Dissolution
- Other Creative Solutions
Speakers
Tatyana Pishnyak,
Mansour Gavin LPA
