Riverview Shareholder Disputes Attorney
Clearwater Business Law helps small and mid-sized businesses in Riverview navigate complex shareholder disputes. Whether your problem involves a partnership or corporate officers, our team can offer the legal backing you need. From simple contract reviews to fierce litigation, we address every aspect of shareholder disputes. We know how challenging these situations can become and are here to offer solutions. Don’t wait to get the legal help you need. Reach out to our Riverview attorneys today.
Addressing Shareholder Conflicts in Riverview
- Breach of Fiduciary Duty: Corporate officers and managers must act in good faith toward their shareholders. Sometimes, a controlling majority shareholder has an obligation to minority shareholders as well. This fiduciary duty is recognized as the highest standard of care in U.S. law. If a breach occurs, the offending party may be responsible for compensating shareholders for their losses.
- Corporate Officer Self-Dealing: We handle shareholder claims that involve accusations of self-dealing. Under Florida law, this occurs when an insider, such as an officer or director, leverages their position for personal gain at the expense of the corporation or partnership. Self-dealing can have serious financial consequences for affected shareholders.
- Other Shareholder Claims Against Directors, Officers or Managers: We also represent clients in cases where corporate officers, directors, or insiders are accused of misconduct. If you are a shareholder disputing a majority owner or manager, we can provide the necessary help. Our firm handles all aspects of these claims effectively.
- Shareholder Derivative Lawsuits: Derivative lawsuits brought by shareholders are complex. In simple terms, the shareholder sues on behalf of the corporation itself. But they can’t do so whenever they want. In Riverview, a shareholder can only bring a derivative claim if the corporation has a valid cause of action but refuses to pursue it. This refusal often occurs because a corporate officer or director has a personal interest in blocking the lawsuit, sometimes because they would be named as the defendant.
- Shareholder Oppression Claims: The concept of ‘shareholder oppression’ applies to situations where majority shareholders engage in behavior that unjustly harms minority shareholders. This can be a pressing issue for non-public companies and partnerships. Minority shareholders may not have a straightforward way to sell their shares and maintain value. If mistreatment is suspected, it’s crucial for a minority shareholder to consult with a qualified business law attorney for a thorough evaluation.
- Deadlock Disputes: Deadlock disputes arise when business decisions are stuck due to opposing views among shareholders. Small businesses with just a few owners are particularly vulnerable to deadlocks. They may occur when two partners disagree on a vital issue or when the articles of incorporation require a unanimous vote that can’t be achieved. These disputes can be damaging if not addressed, and legal assistance should be sought.
- Minority Shareholder Rights: At our firm, we ensure that minority shareholders are able to exercise their legal rights. In Florida, these rights include voting for directors in corporations or managers in LLCs. Minority shareholders also have inspection rights, which allow them to review company documents. Additionally, they are entitled to a fair share of any declared profits through distribution rights.
Understanding the Importance of Mediation in Shareholder Disputes
Mediation, alongside litigation, provides a valuable means of resolving shareholder disputes. This alternative method allows for constructive dialogue, guided by a neutral mediator. It often results in amicable and cost-effective solutions that help maintain business relationships and avoid the public scrutiny that comes with litigation. At Clearwater Business Law, we stand ready to support clients throughout the mediation process, ensuring their interests are represented and a fair resolution is achieved. If you are encountering a shareholder dispute, consider starting with mediation.
FAQs by Riverview Clients
Can a majority shareholder remove a minority shareholder in Florida?
While majority shareholders may try to take actions that disadvantage minority shareholders, they cannot arbitrarily remove them without legal justification. Any attempt to do so could lead to legal claims for shareholder oppression.
What is the business judgment rule in Florida?
The business judgment rule protects directors and officers from liability as long as their decisions are made in good faith, are informed, and are in the best interest of the company. It shields them from second-guessing by shareholders.
Can a shareholder refuse to attend meetings in Florida?
Shareholders are not legally required to attend meetings. However, failure to attend may result in missed opportunities to vote or participate in important corporate decisions.
Speak with Our Riverview Shareholder Dispute Lawyers Today
Clearwater Business Law has extensive experience handling shareholder disputes. To find out how we can assist, call (727) 785-5100 today to schedule your fully confidential consultation. We represent shareholders in Riverview and beyond.