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Shareholder Disputes

Many businesses are closely held corporations. You may be one of a small number of shareholders. The fact there are few of you could mean that disagreements or disputes among your fellow shareholders could result in serious harm to the business. Tony Liu represents shareholders involved in disputes both before and after lawsuits are filed.

You may be part of the group that started the company or you joined it later to help it reach its goals. There may have been ambitious goals and high expectations, but things haven’t gone as planned.

  • The corporation may face difficulties or unexpected opportunities have come up and shareholders are at odds over what to do next.
  • One or more shareholders may feel the board of directors isn’t doing their job, isn’t managing the corporation properly or freezing them out of participating in the running of the company.
  • You may be faced with a situation where a shareholder abused his or her position for personal gain and is no longer trusted by others.
  • A shareholder may want to sell his or her interest to other shareholders but a price can’t be worked out.
  • A shareholder may be going through a divorce and the company may soon have an unexpected and unwanted new shareholder.
  • A bankruptcy filing or a fellow shareholder deep in debt could result in company shares being sold to an outsider with little knowledge or understanding of the corporation.

Ideally a shareholder agreement is in place that will address conflicts before they boil over and harm the business. If serious disagreements exists and there is no such agreement, or the parties disagree over the agreement or how it can be enforced, the business could be harmed if ownership can’t make decisions or are actively trying to push each other out of the business. If it faces serious challenges in the marketplace, in addition to shareholder disputes, the business could suffer a downward spiral, taking down with it all the hard work and capital invested by shareholders.

Most shareholder disputes are resolved without a judge deciding the outcome after a trial. Shareholders and their attorneys usually work out a resolution that all parties can accept, sometimes with the help of a mediator, often with one or more shareholders selling their shares. But there are also times when shareholders can’t come to an agreement and feel strongly enough about protecting their rights and interests that lawsuits are filed and issues are litigated.

We work with shareholders who want legal advice and help to prevent shareholder disputes and to address them if they come up. Whether you need help in negotiating on your behalf a positive outcome or the situation’s reached a point where lawsuits are being filed, Tony can work to protect you and your interests while trying to avoid harming the business.

we provide skilled legal counsel and representation in shareholder disputes involving corporations large and small. To schedule a consultation with an experienced California business law attorney call now at (714) 415-2007.

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