West Palm Beach Shareholder Disputes Attorney
There are many types of disputes that can arise in a business and they are not always limited to the partners or owners of the business. Sometimes, other parties that have an interest in the business, such as shareholders, may also have a dispute with the company. These disputes are just as disruptive to a business and if not resolved properly, they can harm both the shareholders and the company they have invested in. Below are just a few of the most common types of shareholder disputes our knowledgeable West Palm Beach shareholder disputes attorneys can assist with.
Self-dealing occurs when the officer or director of a company takes advantage of their authoritative position so they can advance their own interests. When this occurs, the officer or director typically has no regard for the corporation, the partnership, or the shareholders, which can result in great financial harm to all other parties.
Breach of Fiduciary Duty
A person has a fiduciary duty to another party to act in a manner that protects the party’s interests at all times. A fiduciary duty typically involves finances and officers and executives in the company have a fiduciary duty to their shareholders. Fiduciary duties are the highest standard of care one person owes another under the law in the United States. When one party breaches their fiduciary duty, the party that breached the duty can be held liable for any harm or loss sustained by the shareholders.
Shareholder Derivative Lawsuits
Shareholder derivative lawsuits are particularly complicated. These lawsuits are filed when a business has a legitimate legal claim against another party but the business refuses to pursue it. When this is the case, shareholders are at great risk for suffering financial harm. For example, an officer of a corporation may not want to file a lawsuit because they may be named as a defendant. In this case, a shareholder may file a derivative lawsuit.
Shareholders have a number of different rights under Florida law. For example, shareholders have inspection rights that allow them to review the books of the company from time to time. Shareholders also have the right to vote on which owner will be responsible for the day-to-day operations of the company. These are just two of the rights shareholders are provided under the law. Any time a shareholder’s rights are violated, they may have a valid claim.
Sometimes, the people in charge of a business are involved in a dispute and they cannot come to a resolution. For example, the articles of incorporation for a company may require a unanimous vote, but one cannot be reached. When this is the case and shareholders are harmed as a result, they can file a claim against the company.
Our Experienced Florida Business Lawyers can Help with Your Case
If you have been harmed by a shareholder dispute, our skilled West Palm Beach business lawyers at Pike & Lustig, LLP, can help. We know shareholders have rights, how to ensure those rights are upheld, and the legal action to take when shareholders are harmed. Call us today at 561-291-8298 or fill out our online form to schedule a meeting with one of our attorneys.