Shareholder Disputes Attorney in Irvine, California

Shares in corporations are purchased and owned by shareholders, providing them with a portion of ownership in the company. What are the rights of shareholders in the state of California? What happens when there are legal disputes between the shareholders and the corporations in which they have an interest? How can such disputes be resolved? Based in Irvine and serving clients throughout Los Angeles, Orange, and San Diego counties and the entire state, attorney William B. Hanley has the experience and knowledge to answer your questions and provide the legal guidance you need.

Shareholder Rights in California

Under California law, there are safeguards and guidelines in place to outline the rights of shareholders. According to the California Corporations Code, all shareholders are entitled to the following:

  • An annual report
  • Bylaws of the company
  • Vote results from company meetings

These rights are given to any shareholder, regardless of the size of their ownership stake or the length of time they have owned stock.

Along with those rights afforded to all shareholders, there are additional things to which individuals are entitled if they own at least five percent of a corporation, including access to shareholder lists, records, and corporate financial information. This access is predicated, however, on the shareholder establishing (in writing) a “reasonable relationship” between their interest as a shareholder and their reasons for wanting to inspect the information.

If these requests are denied by the corporation, or if other issues arise, there is a potential for disputes to develop between the company and its shareholders.

Avoid or Resolve Disputes

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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.

Shareholder Disputes Attorney in Irvine, California

For over four decades, attorney William B. Hanley has been providing individuals and businesses with skilled legal counsel to help them navigate their way through their complicated business law matters throughout the southern California area. If you are involved in a shareholder dispute and in need of reliable representation, contact William B. Hanley, Attorney at Law today and schedule a consultation.