Shareholder Dispute Lawyer

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Top Shareholder Dispute Lawyer In Arcadia

As a shareholder, you have certain rights and protections under California law, including voting on critical issues, accessing company information, and receiving dividends. When conflicts arise between shareholders and corporations, legal disputes can quickly escalate and put your investment at risk.

Mohajer Law Firm is committed to providing clients with the highest legal representation and guidance to resolve shareholder disputes effectively. Our shareholder dispute lawyers in Arcadia, California leverage their extensive practice and knowledge of California law to help you protect your interests and achieve a favorable outcome. Whether through mediation, arbitration, or litigation, we have the expertise to handle your case with skill and professionalism. Contact us today to learn more about how we can help you with your shareholder dispute.

What Is a Shareholder Dispute?

Shareholder disputes are disagreements or conflicts among shareholders of a company. These can arise from various causes, such as disagreements over management and direction of the business, distribution issues such as profits or dividends, breaches of fiduciary duties, and disagreements between majority and minority shareholders.

In certain instances, shareholder disputes may occur when shareholders have different visions or goals for the company or differ on how it should be run. These disagreements can cause tension, conflict, and even legal action.

Shareholder disputes can be particularly complex, as they have the potential to have a lasting effect on a company’s operations, reputation, and financial health. That is why these disagreements must be settled quickly and efficiently to minimize any harm suffered by the business and its stakeholders.

Shareholder disputes can be settled through negotiation, mediation, or litigation. In certain situations, it may be necessary to retain a business shareholder disputes lawyer in Arcadia who will offer legal guidance and representation throughout the resolution process.

Types of Corporate Misconduct That Can Lead to Shareholder Disputes

When problems arise among shareholders or between shareholders and executives, it is known as a shareholder dispute. But what causes such disputes? Our Arcadia shareholder dispute lawyer deals with the following types of corporate misconducts that lead to shareholder disputes: 

  • Accounting Fraud: When a company intentionally misrepresents its financial statements, it can cause great harm to shareholders. Accounting fraud often results in inflated stock prices, which harm investors who have invested in the business.
  • Insider Trading: Insider trading occurs when individuals with inside information about a company’s activities trade on that knowledge, giving them an unfair edge over other shareholders. If this type of corporate misconduct leads to significant financial losses for those affected, shareholder disputes may ensue.
  • Breach of Fiduciary Duty: Fiduciary duty refers to the legal responsibility placed upon corporate officers and directors to act in their company’s and shareholders’ best interests. A breach of fiduciary duty occurs when these individuals prioritize their self-interest over those of the company and its stakeholders.
  • Misuse of Company Assets: If company officers or directors use company resources for personal gain, it could cause shareholder disagreements and financial losses for shareholders. Such misconduct may lead to legal action being taken against those involved.
  • Discrimination or Harassment: Discrimination or harassment in the workplace can tarnish a company’s reputation and result in financial losses for shareholders. Shareholders may take legal action against corporate officers or directors if they believe they have failed to address discrimination or harassment at work.
  • Failure to Disclose Material Information: Companies have a legal obligation to promptly disclose material information to their shareholders. Failure to do so could lead to shareholder disputes if the failure results in financial harm to shareholders.

When Do You Need a Shareholder Dispute Lawyer?

A shareholder dispute can arise from many situations, such as disagreements over the direction of a company, breaches of fiduciary duties, disagreements over dividends and profit sharing, and conflicts among shareholders over management decisions. If you find yourself involved in such an argument, consulting with and hiring a legal professional for guidance and representation may be beneficial.

Here are some indications you might need a business shareholder disputes attorney in Arcadia:

  • You are involved in an argument with other shareholders over the management or direction of the company.
  • You believe other shareholders or members of management are breaching their fiduciary duties to you as shareholders or directors.

 

  • Are you facing legal action from other shareholders or the company and want to enforce your rights as a shareholder, such as accessing company records or participating in shareholder meetings? Look into filing for protection.
  • Are you considering purchasing or selling shares in the company and need legal advice on the transaction?
  • Or are you looking to dissolve or wind up the company’s affairs?

In any of these scenarios, a shareholder partnership dispute lawyer in Arcadia can protect your rights and interests, negotiate a resolution to the conflict, or represent you in litigation if necessary. It’s essential to work with a knowledgeable Arcadia shareholder dispute attorney so that you receive guidance and representation to ensure the best possible outcome.

Resolve Your Shareholder Disputes Comprehensively, Confidentially, and Cost-Effectively

Are you facing a contentious shareholder dispute or anticipating a disagreement with other stakeholders in your enterprise? Look no further than Mohajer Law Firm for expert advice and top-notch legal representation. Our skilled team of shareholder dispute attorneys in Arcadia provides tailored solutions to resolve shareholder disputes of all sizes and across diverse industries in California.

Call us today at (626) 569-5200 or fill out our contact form and have your case evaluated by our team of expert lawyers for shareholder disputes.



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Frequently Asked Questions (FAQs)

What are the rights of shareholders in California?

As a shareholder, you have the right to access a corporation’s bylaws and articles of incorporation, also known as the corporate charter, in California. You are entitled to receive information about any special, regular, or annual meeting vote results.

What happens if shareholders disagree?

Regarding disagreements between shareholders, voting power is often the key factor in resolving the issue. However, minority shareholders have some protection in certain situations where the majority shareholders may be taking advantage of their position.  These are called minority rights and are often written down as a minority report of a meeting.

Can you remove a shareholder without their consent?

If there is no agreement in place or if it has not been violated, a minimum of 75% majority is required to remove a shareholder, who must hold less than a 25% majority. The removal process involves voting, and the shareholder is typically compensated upon their removal.

Is it illegal to mislead shareholders?

Regarding the sale or purchase of a security, SEC Rule 10b-5 makes it unlawful for any individual to deceive or defraud someone, including misrepresenting important information.

Who is legally directly responsible to the shareholders?
Shareholders of a corporation elect the board of directors to manage and oversee the company on their behalf, making important corporate decisions. The board is directly responsible for protecting and managing the shareholders’ interests in the corporation.