Conflict with a partner: how to settle it?
In a company managed by several partners, conflicts sometimes arise between employees, blocking the activity and the management of the company. How to settle these conflicts between partners? Can we avoid them?
Conflicts between partners: how to manage them?
A conflict with a partner can be settled in two ways: either amicably or by going to court.
Manage the conflict amicably
Resolving a conflict with a partner amicably means avoiding legal proceedings, which can be long, costly and not without problems. There are different ways to settle a dispute with a partner out of court: mediation, conciliation, or even arbitration.
Mediation
During a mediation session, the two conflicting parties wish to resolve the dispute proactively. They are accompanied by a mediator who supervises the exchanges, whatever the phases (listening, speaking time, claims specific to each party). He does not intervene to give his opinion and must therefore remain neutral throughout the debates. The outcome of mediation aims to find common ground for the two professionals and restore balance in the relationship. Namely: the mediator is an independent third party who generally invoices his service.
Conciliation
Unlike mediation, conciliation is a free practice provided by a conciliator who can be appointed by a judge. After listening to the different parties, the conciliator proposes a solution to the dispute, which may or may not be accepted by the parties.
Arbitration
A judge appoints an arbitrator responsible for settling the conflict using his or her skills and expertise. The solution he proposes at the end of the arbitration phase is imposed on both parties, unlike conciliation.
Manage the conflict through justice
If the situation cannot be resolved amicably with one of the three solutions presented above, legal action may allow hostilities to end. A summary application should be filed with the competent judge in order to obtain the appointment of an agent; the agent's mission must be precisely determined in the request. The latter then appoints an agent responsible for settling the conflict within a predefined period. He brings the different parties together on several occasions in order to find common ground.
At the end of these various meetings, if the two parties have succeeded in reaching an agreement, the agent explains to them the transactional protocol with a view to resolving the conflict. If the conflict remains insoluble, the agent can inform the judge of the disagreement between the parties, which may eventually lead to the dissolution of the company.
Read also: How to protect your business from a legal point of view?
Can conflicts between partners be avoided?
In order to avoid a situation of conflict between partners which can potentially lead to the dissolution of the company, it is necessary to put in place procedures aimed at avoiding these conflicts. At the time of the constitution of the company, and in particular during the drafting of the statutes, it is advisable to anticipate the possible conflicts and to envisage solutions of resolution.
Choose and know your partner well
The first step to guarantee a certain balance in the management of the company: the choice of the partner. It is essential to know your teammate well, his motivations, his strengths and his weak points, to know if, in the long term, the relations between associates will be stable.
Disagreements between partners can result from a different vision of the company by each. For the business to thrive, it is essential that the associates share the same personal values and the same aspirations for the business they manage.
Define everyone's role from the start
When setting up the business, the role of each partner should be precisely defined. A good association is based on the complementarity of the stakeholders, in terms of skills and roles to be performed. For example, one partner may focus on the financial and business side of the business, if the other partner is more practical and technically comfortable.
Proper distribution of share capital
Another source of conflict between partners: an equal distribution of capital. To avoid conflict situations between shareholders and the blockages that may result, it is advisable to have a majority shareholder in order to be able to impose decisions that are in the social interest, in the event of a crisis.
Drafting a shareholders' agreement or a shareholders' agreement
A shareholders' agreement or a shareholders' agreement (depending on the form of the company chosen), is a contract which is added to the statutes of the company and which defines in a more precise manner the rules established in the statutes. Such a pact may in particular provide for an adjustment of the distribution of powers for certain decisions, its purpose may be to anticipate certain sensitive decisions or even provide for a specific settlement of conflicts. This type of document must be drafted with an expert to guarantee compliance with the legality of certain clauses, and to ensure that they are clear and that they are not subject to interpretation.
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