Common Shareholder Disputes
Shareholder disputes can arise in any corporation, public or private, large or small. Sometimes, disagreements arise between the shareholders themselves or between company owners and shareholders. There can be many different issues at the heart of these disputes, but one thing is always true – it is important to resolve shareholder disputes as efficiently and effectively as possible to preserve the company’s bottom line.
Common issues involved in a shareholder dispute include:
- The breach of the shareholder agreement
- Breach of fiduciary duty
- Disagreements about the management or direction of the company
- Minority shareholders getting bullied by majority shareholders
- Personal issues that impact business relationships
- Conflicts of interest
- Discrepancies in contribution or compensation
- Inadequate distribution of dividends
- Allegations of fraud or unlawful conduct by the company
Whatever a dispute entails, the stakes can be high. If you do not address the dispute and try to resolve it head-on, it can escalate into costly shareholder litigation. The best thing to do if you foresee a dispute is to consult with a Boca Raton business litigation lawyer.
There are different ways to resolve shareholder disputes, and the shareholder agreement should have guidelines for dispute resolution. Often, the agreement will require alternative dispute resolution instead of litigation, which might include:
- Negotiations between the parties and their attorneys
- Mediation
- Arbitration
Even if the matter is not going to court, you still want to have counsel from a business attorney to ensure that you take the necessary steps to protect the interests of the company and its shareholders moving forward.
A Boca Raton Business Litigation Attorney Can Help
If you have a shareholder dispute – or any type of business-related conflict, seek help from the legal team at Rubino Findley PLLC. Contact us to discuss your situation and learn how our experienced Boca Raton business litigation lawyers can help.