Are you concerned about the breach of a fiduciary duty to a shareholder? Do you have questions about a proposed merger or other questionable actions by a majority shareholder in San Diego and need sound advice and counsel?
The Watkins Firm has served shareholders in the San Diego business community for more than four decades. We provide advice to minority shareholders and those who are concerned about the direction of the corporation or the actions of it’s management, executives or Board of Directors. The decisions leading up to alternatives such as a a forced liquidation or derivative lawsuit can be quite complex. We guide our shareholder clients through the process and help to protect and assert your rights as a shareholder.
California Has Enacted Strong Laws to Protect Against the Breach of a Fiduciary Duty to a Shareholder
California has enacted strong laws regarding the breach of a fiduciary duty to a shareholder to protect the minority interests of corporations in our state. However, there are still those who would deny legitimate access to the books or deprive a shareholder from receiving appropriate dividends or distributions. How does a shareholder protect their interests and the viability of the corporation in the face of a “freeze out” or mismanagement?
Pro-Tip: “We’ve had so many shareholder fights where a company group of friends or a group of friends who know friends, maybe 30 people invest in a company and it’ll be doing well, but not great. And the investors, the shareholders won’t be receiving disclosures, or they will be receiving them, but they sort of don’t add up.
And then they do an investigation and they come to the Watkins Firm and say, well, let’s get in there. After legitimate requests to see the books and corporate records, we get some pushback from the company. And that’s when all the hairs in your neck stand up and our client directs us to file a motion. And we discover through our due diligence that the company’s doing very very well, and that they also formed an offshore corporation of the same name. And they’ve taken all the assets out of the company, and they’re all driving Rolls-Royces. So this has happened more times than I can say, because, money just, changes people. There’s no fight unless there’s money involved. Usually, a lot of money.”
The Watkins Firm Will Assert Your Rights and Protect Your Investment and Interests as a Shareholder
One option is for the Watkins Firm shareholders’ rights attorneys to assert your rights and negotiate with majority interests, corporate executives or directors on your behalf. Our successful track record at trial and reputation within the business community add powerful weight to your side of the dispute. They know we will hold them to the letter of the law and in many cases the simple fact of our involvement and our legal skill can result in the favorable outcome you seek.
In other cases it may be necessary to bring a lawsuit or derivative action by the shareholder on behalf of the corporation itself. The shareholder may be concerned about conflicts of interest or the breach of a fiduciary duty to the shareholder by one of the directors or an executive of the company. In a derivative lawsuit you, as a shareholder, step into the shoes of the Board of Directors and bring a lawsuit to enforce your rights as a shareholder on behalf of and for the benefit of the corporation itself.
Shareholder disputes in San Diego can be quite complex. If you are a concerned shareholder we invite you to review our podcast Episode 14 – Shareholder’s Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
