What Does a Shareholder Do if the Corporation is Headed in the Wrong Direction?

Corporation is Headed in the Wrong Direction - Derivative Suit

What should a shareholder do if the corporation is headed in the wrong direction or executives and Board members are making bad decisions?  The experienced shareholder dispute attorneys at the Watkins Firm have several strategies to support minority shareholders, and those who are concerned about corporate decision making.  The fastest and most cost-effective solution is effective negotiation.  The Watkins Firm attorneys have decades of experience in San Diego shareholder disputes and business litigation matters, and have developed a track record and reputation of success.  We work on your behalf to engage the executives and/or Board members to discuss concerns and negotiate a path forward that meets your goals and objectives.

Mediation and arbitration are two effective alternatives to litigation.  Mediation is often the next step in the process.  A neutral third party (the mediator) hears the our concerns and the positions of the company’s leadership and offers insight, and the benefit of how the law will usually handle such disputes.  This venue provides an opportunity for the parties to find common ground and work out a solution that gets things back on track.  Arbitration is a much more serious venue with more structure.  Our attorneys provide a brief to the “Neutral” (often referred to as the arbiter) who then hears testimony from key players.  The ruling of the arbiter is binding on all parties, and this is sometimes a concern.

Another effective option is known as a “derivative lawsuit.”  The derivative lawsuit is brought by a shareholder on behalf of the corporation against the executives or Board of Directors.  The experienced business litigation attorneys at the Watkins Firm work to aggressively pursue the outcome our clients seek, while negotiating to find an effective solution.  There are several alternatives to a shareholder who believes the corporation is headed in the wrong direction and wishes to take action.  For additional information on shareholder disputes we invite you to contact us or call today for a free consultation at 858-535-1511.

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