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Miami Shareholder Disputes Attorney

Litigation that involves corporations and other large entities are some of the hardest fought, as the stakes are very high. Disputes between business owners and their shareholders are quite common, regardless of whether the disagreement involves breach of contract, breach of fiduciary duty, or another dispute. These disputes typically occur between one or more parties who have not addressed the inevitable differences of opinion that will occur, or the certain contingencies that occur in every business. A Miami shareholder disputes attorney can help parties resolve their dispute and ensure another does not occur in the future.

Why Do Shareholder Disputes Occur?

Many shareholder disputes can be avoided with proper planning. This is a particular problem for corporations and other large entities because these businesses can be started very easily online without any legal assistance. However, starting a corporation or another company using these bare bones forms will likely lead to a serious dispute in the future.

When creating a corporation or other business, individuals sometimes think that all they have to do is file articles of incorporation or articles of organization. They do not think to create shareholder and operating agreements that can prevent disputes from arising in the future. Some of the most preventable shareholder disputes that arise include:

  • A breach of contract, such as breaking the articles of association
  • A breach of fiduciary duty
  • Accusations of the minority shareholders’ interests not being taken into account
  • Conflict of interest accusations

When shareholders are closely involved with the day-to-day operations of the business, these disputes are even more likely to arise.

Derivative Actions vs. Direct Actions

Shareholder disputes can result in either a derivative action or a direct action. In a derivative action, a shareholder can file an action on behalf of the corporation. Usually in these instances, the shareholder wants to file an action because the business has been harmed in some way but the company refuses to take their own legal action. As such, the shareholder must take action on their own, which is derivative.

A direct action, on the other hand, is legal action the shareholder takes to protect their own interests. For example, if a minority shareholder believed they were being harmed to protect the best interests of the majority shareholders, they could take direct action against the company.

The Florida courts will examine the language within a shareholder’s complaint to determine if the action is derivative or direct. When filing a derivative action, shareholders must typically show that they have exhausted all other remedies with no resolution.

Our Florida Business Litigation Lawyers can Help with Your Dispute

If you are involved in a shareholder dispute, do not file a lawsuit on your own. At Pike & Lustig, LLP, our Miami business litigation lawyers have the creative solutions you need, and the experience necessary to resolve the dispute as quickly and easily as possible. Call us today at 305-985-5281 or contact us online to schedule a meeting with one of our skilled attorneys.

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