How to Resolve Shareholder Disputes
There are a variety of causes for disputes between co-owners of a company, or between the organization and its shareholders, including:
- A breach of contracts such as shareholder agreements or articles of association.
- Shareholders not being provided with the company’s most current financial information.
- Allegations of conflicts of interest between individual shareholders and/or the company.
- Allegations that any member or shareholder is acting in violation of their fiduciary duty.
- Disputes between majority and minority shareholders as to lack of fairness.
The possibility of these types of disputes can be lessened if proper steps are taken to avoid them. Working with a knowledgeable shareholder disputes attorney can provide the guidance needed to ensure contracts, partnerships, shareholder agreements, and other documents are drafted properly. In the event that disputes do take place, mediation is the preferred method of seeking a resolution.
Arbitration and litigation are available avenues to pursue, but these options should be considered last resorts, as they put the outcome in the hands of an outside party. All members of the corporation (shareholders included) should prioritize the best interests of the business and pursue an amicable means of resolving any disputes. Having an experienced attorney like William B. Hanley working on your side — no matter which side of the dispute you may find yourself on — will put you in a strong position to work toward a fair and reasonable outcome.
How an Attorney Can Help
As with any legal matter involving complex regulations and intricacies, it is in your best interest to consult with an experienced attorney before proceeding. Rather than attempt to handle your shareholder dispute on your own, let a seasoned professional lead the way. Attorney William B. Hanley has been practicing business law and its related areas of law for decades and has experience representing both plaintiffs and defendants in shareholder disputes. You can feel confident that your case, no matter which side of the dispute you find yourself on, will be in good hands.
William B. Hanley is based in Irvine but serves the legal needs of clients across the counties of San Diego, Orange, Los Angeles, and throughout the state of California.