Shareholder Disputes Lawyer
Whether a company had a handful of shareholders or hundreds, those involved have an invested interest in the business and can impact the other shareholders. The decisions made on behalf of the business can impact the financial well-being of all shareholders. When business disputes occur, resolving them internally is often preferred. When resolution is not achieved, it can result in litigation, especially when one or more shareholders have been financially harmed in the dispute.
The rights and responsibilities of shareholders and the company are often dictated by a shareholder agreement or contract. When an agreement is not in place, the law dictates the rights of shareholders in certain disputes. Most often, it is a minority shareholder that is impacted by decisions made by majority shareholders. When dispute resolution methods are not beneficial, the minority shareholder may need to resort to litigation to protect their investment.
When shareholder disputes occur, they can involve aspects of business law including breach of contract or fiduciary duty. Major shareholders owe fiduciary duty to minor shareholders. In good faith, the decisions made should be for the benefit of all, not in their personal best interests. For example, if a minor shareholder decided to sell their shares and was given a buyout based on a valuation of the company, then the company sold for millions more than the valuation given a short period later, pursuing a lawsuit may be the only option for the shareholder to receive the money owed for their shares.
Shareholder disputes can be extremely complicated. Large corporations may require shareholders to use derivative litigation to sue on behalf of the corporation to protect their rights, while corporations with fewer shareholders can use direct litigation. Our team at Conley Griggs Partin LLP has the expertise and resources to handle these types of complex business lawsuits, working diligently to resolve shareholder disputes to benefit our clients. Contact our law office today to schedule a consultation.