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How to Deal With the Early Stages of a Shareholder Dispute


Shareholder disputes can arise for a wide range of different reasons—from fundamental disagreements about the current direction of the company to allegations of serious misconduct by a corporate officer, corporate director, or the majority shareholder. With shareholder disputes, partnership disputes, and other internal business disputes, a proactive approach is always best.

There are steps you can take in the early stages of a shareholder dispute to help protect your legal rights and move the disagreement towards a cost-effective resolution that actually works for you and the company. Here, our Miami shareholder dispute attorneys discuss three tips for dealing with the early stages of a shareholder dispute.

  1. Know and Protect Your Position: Review Contractual Rights 

If you are in the initial stages of a dispute between shareholders, it is important that you take the time to understand your rights. In Florida, a shareholder’s legal rights are primarily derived from the shareholder agreement. Under Florida Statutes § 607.0732, a shareholder agreement must meet certain basic legal standards to be enforceable.

Assuming you have a shareholder agreement, you should take the time to review and confirm your rights. When you have a full understanding of your position, you will be in the best position to navigate a shareholder dispute. If you have any questions about the meaning or implications of your shareholder agreement, an experienced Florida shareholder dispute attorney can help. 

  1. Consider Options for a Resolution 

One of the key benefits of addressing a shareholder dispute early is that doing so will ensure that all options for resolution are still on the table. As a general rule, you (and the company) will want to avoid any type of shareholder litigation. Litigation is rarely advisable if there is another reasonable path to reach an agreement. Although a lawsuit may ultimately be required in some cases, there are often more efficient, cost effective solutions available in shareholder dispute cases. The earlier you get started working towards a resolution, the easier it will be to find one. 

  1. Be Ready to Take Legal Action if a Shareholder Dispute Persists 

If a shareholder dispute persists, it is essential that you formulate a comprehensive overall strategy to protect your legal rights and financial interests. At this point in the process, you should strongly consider retaining professional legal counsel. A Florida shareholder rights lawyer can help you determine the proper course of action. If early settlement or alternative dispute resolution (ADR) are not viable options, you may need to escalate the matter.

Schedule a Consultation With a Shareholder Dispute Attorney in Southeast Florida

At Pike & Lustig, LLP, our Florida shareholder rights attorneys are devoted to assisting our clients in finding solutions that work. Our firm has the experience If you are involved in the early stage of a shareholder dispute, we are here to protect your rights. To arrange a private initial consultation with a skilled Florida shareholder lawyer, please call us today. We advocate for the rights of shareholders in Miami, West Palm Beach, and throughout the region.



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