Shareholder & Corporate Disputes
A company may have one shareholder or hundreds—but regardless of the number, these stakeholders have significant influence over the company’s direction through majority rule. When relations are harmonious, everyone in the company thrives. However, when shareholder disputes arise, the entire organization can become paralyzed by conflict.
In these challenging situations, having an expert shareholder dispute attorney guide you toward resolution isn’t just helpful—it’s essential for preserving both business operations and relationships. Contact Ledingham Law today to work with a corporate attorney for shareholder disputes who can help you arrive at an ideal solution for all parties involved.
What Are Shareholder Disputes?
Shareholder disputes generally occur when shareholders disagree about an organization’s operations, financial management, or fulfillment of fiduciary duties.
DISPUTES OVER THE COMPANY’S DIRECTION
As experienced corporate dispute attorneys, we at Ledingham Law understand that family-owned and small private businesses commonly face shareholder disputes over the company’s strategic direction. These conflicts often center around critical decisions such as:
- The dismissal of key employees or executives
- Relocating company operations
- Ceasing certain business activities
- Pivoting business objectives or entering new markets
We recognize that not every shareholder dispute should end up in litigation. Our shareholder dispute attorneys provide thoughtful legal advice that helps you weigh your options and determine whether mediation or negotiation might serve your interests better than formal legal action. As your corporate attorney for shareholder disputes, we focus on finding practical solutions that protect both your business interests and important relationships.
Breach of fiduciary duty
Company officers and board directors owe the business a fiduciary duty—they’re legally required to make informed decisions and exercise reasonable care when managing company affairs. When these duties are breached, the consequences can be severe for all stakeholders.
If you suspect that members of your organization have breached their fiduciary obligations, it’s crucial to consult with corporate dispute attorneys rather than hoping the conflict will resolve itself over time. Unaddressed breaches can worsen, potentially causing irreparable damage to the business.
Whether litigation or negotiation proves to be your best option, a shareholder dispute claim must establish three critical elements:
- The existence of a fiduciary relationship between the plaintiff and defendant
- The fiduciary’s breach of duty owed to the beneficiary
- Resulting harm to the beneficiary
Our corporate attorneys for shareholder disputes specialize in claims related to mismanagement of funds, concealment of important information, self-dealing, and failure to file required taxes. With our deep experience in shareholder disputes, we help you navigate these complex issues efficiently and effectively.
SHAREHOLDERS AGREEMENT
A shareholders’ agreement is an optional but valuable document that outlines shareholders’ rights and obligations. It provides a framework for share pricing and establishes how shareholders will make decisions regarding the admission of new shareholders and the roles of minority positions.
Detailed shareholders’ agreements help prevent disputes, but conflicts can still arise when these agreements are violated or interpreted differently by various parties. If you need assistance following a shareholders’ agreement or managing a dispute over its terms, our shareholder dispute attorneys offer the specialized guidance you need.
MINORITY SHAREHOLDERS VS MAJORITY SHAREHOLDERS
Minority shareholders naturally face disadvantages and typically have fewer rights within the organization. While minority shareholders generally retain voting rights, preemptive rights to purchase new shares, and legal rights to receive compensation and proper dividends, these rights can sometimes be overlooked or intentionally violated.
It’s important to seek help from corporate dispute attorneys if your rights as either a majority or minority shareholder have been violated. Our shareholder dispute attorneys understand the nuanced legal protections available to shareholders in various positions.
To avoid high legal costs and permanent damage to relationships within your organization, Ledingham Law provides strategic legal advice regarding whether litigation or alternative dispute resolution methods—such as mediation or arbitration—represent your best path forward.
How Our Shareholder Dispute Attorneys Can Help
When shareholder disputes threaten your business, having experienced corporate attorneys for shareholder disputes by your side makes all the difference. At Ledingham Law, our approach to resolving shareholder disputes includes:
- Preventative Strategies
We help companies develop comprehensive shareholders’ agreements and governance policies that minimize the risk of future disputes. - Early Intervention
Our shareholder dispute attorneys work to identify and address potential conflicts before they escalate into full-blown litigation. - Skilled Negotiation
When disputes arise, we represent your interests in negotiation sessions designed to find mutually acceptable solutions. - Alternative Dispute Resolution
Our corporate dispute attorneys have extensive experience with mediation and arbitration processes that can resolve conflicts more efficiently than courtroom litigation. - Litigation When Necessary
When other options have been exhausted, our shareholder dispute attorneys provide powerful representation in court to protect your rights and business interests.
CLIENT TESTIMONIALS
Being selected for an audit is arguably one of the worst things that could happen to a small business owner, or at least that’s how I felt.
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.
– Parul G.
As a small business owner, I had an enormous amount of questions. I needed to know how to book keep, claim deductions and credits, navigate selling online, providing services in different jurisdictions, and filing quarterly taxes.
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.
– Nate W.
Contact
GET IN TOUCH
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!
