The experienced corporate law and business litigation attorneys at the Watkins Firm represent clients in Board of Director disputes in San Diego. Disputes involving members of corporate Board of Directors can arise for several reasons. Directors carry personal liability for their actions as a member of the Board. There are specific “duties” which each Director must execute, and from time to time disputes will arise.
The oversight responsibilities of the Board of Directors creates a natural tension between members of the Board, and the officers and executives of the corporation they serve. There is a fine line between the authority of a Board of Directors and the executives responsibility to manage the direction of the company. Responsibilities do overlap, and disputes naturally develop. A dispute between a Board of Directors and executive management sap valuable corporate focus, resources and capital.
There is also a natural tension within the Board itself. Board members are usually accomplished successful business people in their own right, and they have strong beliefs and their own unique experiences in business. This diversity of background can be a great asset to any corporate Board, but it is often a source of tension and in some cases outright disputes between Board members.
The Board of Directors also holds a fiduciary duty to the corporation and its shareholders. These duties include a duty of loyalty, a duty to act in good faith, and a duty of care when making decisions. Allegations of conflict of interest, making uninformed decisions or taking actions that are detrimental to the corporation can result in Board of Director disputes in San Diego. Shareholders who are concerned about the actions of the Board can bring a “derivative lawsuit” against the Board on behalf of the corporation.
The attorneys at The Watkins Firm are experienced negotiators, and our unique approach to litigation ensures that disputes are resolved quickly and efficiently. If you are involved in Board of Director disputes in San Diego we invite you to contact us or call today for a free and substantive consultation at 858-535-1511.
