Protecting Dissenting Shareholder Rights - Shareholder Disputes

Protecting Dissenting Shareholder Rights in San Diego Shareholder Disputes

On behalf of Daniel Watkins of Watkins Firm, A Professional Corporation
Posted On February 6, 2018

Protecting Dissenting Shareholder Rights in San Diego Shareholder Disputes

The Watkins Firm has decades of experience protecting dissenting shareholder rights in San Diego shareholder disputes.  What are the rights of a dissenting shareholder under federal and California law?  One tactic of shareholder oppression is to approve a merger with another corporation which reduces the value or power of minority shareholders.  The good news is minority shareholders who are not in favor of the proposed merger are known as dissenting shareholders and the Watkins Firm helps our clients to protect their interests and assert their rights.

Our skilled shareholder dispute attorneys will work to ensure you come through this dispute in the strongest possible position.  While you cannot receive cash from the merger, you may be entitled by law to receive stock in the new corporation, another corporation or a more valuable debt instrument in place of your existing shares.

However, if the deal offered by majority interests is not fair or favorable, you have the right under law to force an appraisal of the the value of your shares, and ultimately force the corporation to pay you the full fair market value of those shares prior to completion of the merger.  This protects you from suffering damages and loss of value or voting power as the result of a merger, while protecting you from overt shareholder oppression.  Protecting dissenting shareholder rights is quite legally complex and it is important to take timely action to contact the Watkins Firm or call 858-535-1511 for a free consultation in these matters.

Be wary of what is known as a “short-form merger” here in San Diego.  When majority shareholders are in control of 90 percent of the shares in a company they may vote to contribute their shares to the new “parent” corporation who assumes a 90 percent ownership of your corporation.  You may have 30 days or less to either accept the offer they have made for your shares or bring a lawsuit to challenge the merger and protect your financial interests.

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To set up a free, no-obligation consultation with one of our knowledgeable San Diego business lawyers, call us at 858-535-1511 or contact us online.

9915 Mira Mesa Blvd., Suite 130
San Diego, CA 92131

Telephone: (858) 535-1511
Fax: (858) 535-1581