Shareholder & Corporate Disputes
A company can have one or more shareholders. Regardless of the number, the shareholders have a say in the direction the company takes by majority rule. When things are great, everyone in the company benefits, but when disagreements arise, the company could be crippled.
In such cases, it is essential to have an expert guide you to a resolution. Contact Ledingham Law today to help arrive at an ideal solution for all parties involved.
What Are Shareholder Disputes?
Shareholder disputes generally occur when shareholders disagree about the organization’s operations, financial management, and fiduciary duties.
These business ownership disputes occur due to various reasons, and some common claims are:
Disputes Over the Company’s Direction
Ledingham Law knows that family-owned and small private businesses and companies commonly have disputes over the company’s direction. This includes items such as:
- The dismissal of an employee
- Moving the company to a new location
- Ceasing operations
- Pivoting business objectives
We know that not every business dispute should end up in litigation. We provide legal advice to allow you to weigh your options and decide if mediation or negotiation is better than legal action.
Breach of Fiduciary Duty Claim
Company officers and the board of directors owe the business a fiduciary duty. As such the officers and directors are required to make informed decisions and use reasonable care when making company decisions.
If you suspect that a member of your organization has breached their fiduciary obligations, then it is important to seek legal counsel rather than hoping that the conflict will resolve itself over the years.
Whether litigation or negotiation is your best option, a claim must establish three elements:
- The existence of a fiduciary relationship between the plaintiff and defendant;
- The fiduciary breached a duty owed to the beneficiary, and
- Harm to the beneficiary
Our law firm specializes in claims related to mismanagement of funds, concealing important information, self-dealing, and failure to file taxes.
Shareholder Agreements
A Shareholders’ agreement is an optional agreement that outlines shareholders’ rights and obligations. It provides a framework for the pricing of shares and how shareholders will make decisions regarding admitting other shareholders and the roles of minority positions.
Detailed shareholders’ agreements help avoid disputes, but sometimes disputes can arise due to a violation of the shareholder’s agreement. In the event that you need assistance in following the shareholders’ agreement or managing a dispute over a shareholder agreement, please contact Ledingham Law.
Minority Shareholders versus Majority Shareholders
Minority shareholders naturally have a disadvantage and fewer shareholder rights. Minority shareholders generally have voting rights, preemptive rights to buy new shares, and the legal rights to receive compensation and proper dividends. It is important to seek legal help if your rights as a majority or minority shareholder have been violated.
To avoid high legal costs and a falling out with other members of your organization, Ledingham Law will provide legal advice regarding whether litigation or an alternative dispute resolution, such as mediation or arbitration, is your best option.
Client Testimonials
Criminal Tax Matters 3
It felt a lot less stressful when I hired Jess to communicate with the IRS on my behalf. Her extensive knowledge of tax law was evident when she would educate not just me but also the RA on the proper law.
She went the extra mile every day – with driving to me, essentially holding my hand through an interview, and making sure all responses to the RA were effective.
If you get audited – I strongly recommend having her by your side.
Criminal Tax Matters 2
A small business requires an enormous attention to detail and Jessica helped me be meticulous in strategizing my tax landscape and know the necessary laws and regulations.
I highly recommend her to anyone with tax questions.
Criminal Tax Matters 1
Jess was always there throughout the audit. She went above and beyond – answering my calls at any time of the day.
What impressed me the most was her attention to detail. She was meticulous in her work and always took the time to explain each step of the process.
Overall, I highly recommend her to anyone going through an audit. I am very grateful to have had her during such a stressful time.
Contact Ledingham Law
At Ledingham Law, our attorneys can review your current documentation and identify any potential conflicts to help you maintain smooth business management.
Additionally, whether you are an aggrieved shareholder or a company, our experienced team can help resolve the shareholder dispute.
Contact Ledingham Law today at (240) 673-6869 for a consultation!
