San Diego Shareholder Disputes and Corporate Law Attorney

Even in the best of times the relationship between majority and minority shareholders in closely held corporations is difficult to maintain at the high optimistic plane upon which those relationships generally commence. With the passage of time many such relationships tend to deteriorate into an uneasy truce maintained only for the common economic benefit.

In harsh economic times, the pressures become greater as minority shareholders tend to blame the controlling shareholders for the problems the business may be experiencing. In some cases, the friction escalates to a point where the corporation and both factions would be better served by a buy-out of one group by the other. Obviously, a negotiated buy-out of the minority faction is the best solution, but the disparity in bargaining power between the majority and the minority factions generally renders those negotiations difficult in the early stages of the dispute. Ultimately, when all else fails, an involuntary dissolution proceeding in the Superior Court must be considered. While a lawsuit from a customer or competitor can impede a company’s growth, an internal dispute between the shareholders of a corporation can do far more damage.

At the Law Offices of Peter Shenas in San Diego, California, we have represented clients throughout Southern California involved in such severe disagreements that required litigation or arbitration to be resolved. These disputes are sometimes referred to as “corporate governance” lawsuits.

Acts of Malfeasance and Corporate Control

Corporate directors and officers have high degree of responsibility to their shareholders resulting from the “fiduciary duty” imposed on them by law. A breach of that fiduciary duty may result in a cause of action in favor of the shareholders for damages. The breach may be in the nature of negligent or intentional acts of malfeasance. The common remedy sought by the shareholders is removal from office and money damages. In other corporate disputes the issue may be control of the corporation. These disputes generally involve minority shareholders suing majority shareholders alleging wrongdoing in the exercise of control and seeking their removal from positions of control.

Representing Businesses and Individuals Involved in Shareholder Disputes

Whether the setting is in a courtroom or in an arbitration hearing room we are aggressive advocates for businesses involved in these internal corporate governance disputes. Abuse by directors and officers has historically existed from time to time in both large and small corporations. Conversely, officers and directors are sometimes wrongly accused of malfeasance. Our firm is highly qualified by its background in this specialized area of the law to properly represent either side in such disputes.

Contact a Seasoned Corporate Law and Shareholder Disputes Attorney

To get more information or to schedule an appointment with an experienced lawyer regarding corporate or partnership internal disputes, please contact us.

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