Although external factors, such as market and competition, are often cited among the main challenges for the survival of companies, studies indicate that internal issues also play a relevant role in the continuity of businesses. According to a survey by Höft Consultoria, seven out of ten partnerships end up broken due to internal conflicts among the partners. These disagreements usually stem from misalignments about the future of the business, profit distribution methods, undefined roles and responsibilities, or differences in management powers. In some cases, there is a perception of unequal dedication among partners; in others, the disagreements are related to the company’s strategic direction.
According to lawyer Bruna Puga, a corporate law specialist and founding partner of BP/F Law, preventing this type of conflict requires two complementary actions: prior alignment among partners and well-structured contractual instruments. ‘A good contract stems from prior alignment among the partners. Before signing any document, partners must align their expectations, visions for the future, and even for life. This dialogue is essential and should take place at the beginning of the partnership, not just when problems have already started to arise,’ she states.
According to Bruna, the corporate agreement and the partnership agreement function as the company’s rules of the game, establishing criteria for profit sharing, defining roles and responsibilities, outlining management powers, and providing mechanisms for conflict resolution. ‘These documents do not eliminate the possibility of disagreements, but they offer a clear path to resolve them without paralyzing or destroying the business,’ she concludes.
According to the expert, these documents do not eliminate disagreements, but they provide ways to resolve them without compromising the company’s operations. The combination of partnership alignment and proper legal instruments, she adds, helps reduce disputes and preserve the organization’s image with clients, suppliers, and investors.
