Category Archives: shareholder litigation
Can a Minority Shareholder Force the Majority to Buy Their Shares?
Minority shareholders face certain risks. If you are a minority shareholder, you may find yourself in a position where you simply want to get out of the business. Perhaps it is because you do not believe in the underlying company anymore, or perhaps it is because you believe that the majority shareholders are damaging… Read More »
Florida Appeals Court Rules Against Shareholder in Fraud Case
On March 21st, 2018, Florida’s Fourth District Court of Appeals ruled against a minority shareholder in an appraisal rights case. In Shiva Stein v. BBC Capital Corp, et al, the plaintiff alleged that her shareholder rights were violated under Florida state law following the merger of two financial services companies. In this article, our… Read More »
Florida Shareholder Rights: Inspection of Corporate Records
Corporations, especially private companies and closely-held firms, owe their shareholders an obligation to furnish certain business records and key information upon request. A shareholder’s right to inspect and copy corporate records is critically important. Without this right, it would be very difficult for shareholders to ensure that their financial interests are actually being protected…. Read More »
Florida Shareholder Case Shows the Complexity of Collecting ‘Lost Profits’ as Damages
On March 17th, 2017, the Florida Second District Court of Appeal released a decision in the case of ICMFG Associates Inc v. Bare Board Group Inc. This case involved a complex shareholder dispute. As a part of the case, one company sought lost profits as damages from its former shareholders. Though the firm was… Read More »
Shareholder Appraisal Rights
Minority shareholders can be substantially affected (and harmed) by the actions of the majority shareholders. This puts minority shareholders in a difficult position. Fortunately, minority shareholders do have some important protections available under Florida law. Perhaps the most valuable legal protection is a minority shareholder’s appraisal rights. These rights, also sometimes referred to as… Read More »
Important Elements of a Shareholders’ Agreement
A shareholders’ agreement is a business contract that details the rights and obligations of the stakeholders of a corporation. The agreement is the foundation of a successful business arrangement. It also protects your business interests. If your shareholders’ agreement is inadequate, it could lead to future disputes or to you losing out on your… Read More »
Corporate Bylaws and Shareholder Lawsuits
When it comes to shareholder derivative lawsuits, companies can often find themselves in an arms race with their own shareholders. Derivative lawsuits are tools that shareholders can use to bring a lawsuit on behalf of a company that they are invested in, when the directors or officers of the company refuse to bring a… Read More »
Duties of the Board of Directors
One of the biggest problems faced by corporations is the known in economics as the “principal-agent problem.” Basically, the issue is that there are all sorts of costs imposed when one person has to act for the best interests of another. Agents may not know what the principal actually wants, or they may act… Read More »