Shareholders who invest in a company have certain legal rights, even if they hold a minority of the shares. When the day-to-day management of the company is concentrated in a small group of managers, enforcing those rights may require skilled legal assistance.
At the Watkins Firm, we help shareholders assert their rights through litigation if necessary. We also advise companies on steps they can take to clarify shareholder rights in order to avoid potential conflicts. For a free, no-obligation consultation, contact a San Diego shareholder rights lawyer at our firm.
Asserting Your Rights as a Shareholder
Our corporate law attorneys help shareholders, who have been subjected to unfair treatment and other violations of their rights. We assist them in pursuing positive resolutions through effective litigation strategies.
Depending on the circumstances, a shareholder may wish to sue the company directly or may wish to bring a shareholder derivative suit against management on behalf of the company. Common types of shareholder rights litigation in California include the following:
- Actions for accounting
- Claims for breach of fiduciary duty
- Complaints of nonpayment of dividends
- Claims for breach of the covenant of good faith and fair dealing
- Complaints of concealment and failure to disclose material information
Whether your concerns are directed at other shareholders who are violating your rights or managers who are violating their corporate duties to some or all of the company's shareholders, we can help you choose an appropriate strategy.
Avoid Shareholder Conflicts With Careful Planning
If you are starting a new company or issuing shares in an existing company, you should consider how best to avoid the potentially costly and destructive consequences of shareholder litigation through careful drafting of shareholder agreements.
The likelihood of eventual shareholder conflict is particularly high if you have a relatively small number of shareholders and not all of them are directly involved in management.
Hire a California Corporate Litigation Lawyer
If you have any concerns about how best to protect your company while respecting your shareholders' rights, do not hesitate to contact our California corporate litigation attorneys to discuss your options.
