Business assets are assets that are owned and controlled by a business entity rather than a private individual. A business may acquire its assets through the course of business operations. Assets may help the business to achieve its business goals, and the accumulation of assets may lead to significant growth for the business.
Some examples of business assets include:
- Monetary funds- including profits, start-up capital, investment accounts, donations, and other sources
- Real and personal property-
- Non-tangible goods- patents, licenses, stocks, copyrights, and other forms
Business assets are necessary for a business to operate successfully. However, they can often be a common source of legal disputes, and therefore are usually addressed in the business’ bylaws or in separate contracts.
Some common disputes over business assets may involve:
- Profits – Disputes over the distribution of profits among members after a business sale of assets is particularly common.
- Classification of assets – Assets need to be properly identified and classified in order to avoid commingling with personal funds.
- Management of assets – There may be disputes over which business members can access or control the various assets; disputes over the investment of assets are also common.
- Use of assets – Assets need to used according to federal and state business guidelines; they should be used to further the aims of the business rather than for personal gain.
- Transfer of assets – Transfer of business assets usually needs be communicated to, and approved by the business board. For example, transferring a business in a will can lead to some problems regarding the assets.
There are may be many other different types of disputes over business assets. Disputes of various kinds can also arise whenever there is a change in management or a reorganization of the business board. Thus, newer officials should be informed of the existing assets that play a role in the business’ operations.
Resolving business asset disputes involves analysis of two different aspects: first, local, state, and federal business laws can often have drastic effects on the way a business dispute is resolved. Depending on the jurisdiction, nature of the business, and types of assets involved, there may be different legal mechanisms for resolving the dispute.
Secondly, many business assets are obtained and managed according to contracts that were drafted specifically for that particular asset. If that’s the case, the contract needs to be reviewed in order to determine exactly what the business parties agreed upon regarding the business asset.
For example, the contract may have dictated how the assets should be sold in the long run. Violation of enforceable contract terms can lead to civil lawsuits in order to recover damages for the breach of contract.
Finding a good business lawyer may be essential if you are involved with a dispute over business assets. Business assets are very important for the life of a business, and proper management of the assets will affect many different people. If have a business dispute, a qualified lawyer will be able to represent you in court, and can perform various tasks like filing claims in court, reviewing contracts, and interpreting the relevant laws for you.