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Miami Shareholder Disputes Attorney

Litigation involving corporations and large entities is often the toughest, with high stakes. Disputes between business owners and shareholders are common, whether they involve breach of contract, breach of fiduciary duty, or other issues. These disagreements usually arise when parties haven’t addressed potential differences of opinion or business challenges in advance. A Miami shareholder disputes attorney can help resolve the current issue and work to prevent future disputes.

Why Do Shareholder Disputes Occur?

Many shareholder disputes can be avoided with proper planning. This is a particular issue for corporations and large entities, as these businesses are often started online with minimal legal assistance. However, launching a corporation or company using basic forms can lead to serious disputes down the line.

When starting a business, individuals may think filing articles of incorporation or organization is enough. They often overlook creating shareholder and operating agreements, which can prevent future conflicts. Some of the most preventable shareholder disputes include:

  • Breach of contract, such as violating the articles of association

  • Breach of fiduciary duty

  • Minority shareholders’ interests not being considered

  • Conflict of interest accusations

Disputes are more likely when shareholders are actively involved in the daily operations of the business.

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 to schedule a meeting with one of our skilled attorneys.

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