Florida Shareholder Disputes Attorney
Disputes occur often in corporations and when they do, they have the potential to become quite heated. Some of the most common disagreements that arise occur between the owners of the corporation and the shareholders. Certain contingencies may occur, and differences of opinion are inevitable. A Florida shareholder disputes attorney can help when these disputes arise and will ensure your interests are always protected.
Reasons Why Shareholder Disputes Occur
Most shareholder disputes are preventable. They often occur because the business owners rushed to create the business without the help of a lawyer. When the structure of the business is not strong, disputes are inevitable. Sometimes, operating agreements and shareholder agreements are not drafted and the lack of this type of planning will result in a dispute. Shareholder disputes occur for many reasons, including:
- Breach of contract
- Allegations that the interests of minority shareholders are not being considered
- Allegations of conflict of interest
- Breach of fiduciary duty
Shareholders are not always directly involved with the daily operations of a business. However, when they are, a shareholder dispute is even more likely to arise. For example, a shareholder may be directly involved in the business and two or more owners of that business are in a deadlock dispute. Deadlock disputes occur when the owners of a business cannot come to a resolution on a disagreement. When a deadlock dispute causes harm to shareholders, the shareholders can file a claim against the company.
Types of Legal Action
Shareholders can take direct action or derivative action when they are in a dispute with the owners of a company. A direct action is legal action a shareholder can take to protect their own rights and interests. In a direct action, the shareholder files a claim directly against the company in order to claim damages that can compensate for the harm they sustained.
A derivative action, on the other hand, is legal action a shareholder takes on behalf of the company. In some instances, the company is in a dispute or has suffered harm to some degree but the partners or owners will not take legal action. When this is the case, a shareholder can take derivative legal action by filing a claim regarding the dispute.
While the concept of direct and derivative actions are fairly straightforward, it can become difficult to determine which type of action to file. A Florida shareholder dispute lawyer can help shareholders with their claim and give them the best chance of a positive outcome.
Call Our Shareholder Dispute Lawyer in Florida
Shareholder disputes can be very harmful to a business. It is important to resolve them quickly to minimize the harm to both the business and those that have invested in it. If you have a legal issue, our Florida shareholder dispute lawyers at Pike & Lustig, LLP, can assist with your case. We can advise on your legal options, and will always ensure your best interests are protected. Call us today at 561-291-8298 or contact us online to schedule a meeting with one of our knowledgeable attorneys.