Are you searching for an experienced, proven California minority shareholder’s lawyer who will stand up for and protect your rights and interests as a shareholder?  The Watkins Firm has more than four decades of experience successfully asserting the rights of our shareholder clients and protecting their interests.  Are you concerned about the actions of those with the majority interest in your corporation and/or it’s managers and officers?

Key Takeaways about What to Look For in a California Minority Shareholder’s Lawyer:

• Unfortunately, many minority shareholders in California are still forced to endure the oppressive tactics of majority interests to withhold dividends or prevent access to important corporate and financial information.
• California provides specific protections for minority shareholders regardless of the state incorporation laws used to form a corporation conducting business in California.
• Minority shareholders have the right to access critical information such as the “record of shareholders” as well as corporate financial reports and supporting documentation.  Depending upon the percentage of the company owned and the specific rights established by their holdings, a minority shareholder may also have the right to review the company books and accounting.

The Challenges of a Minority Shareholder

The challenges of a minority shareholder can be overwhelming.  Unfortunately, many minority shareholders in California are still forced to endure the oppressive tactics of majority interests to withhold dividends or prevent access to important corporate and financial information.  Often, the majority stakeholders may attempt a merger or acquisition designed to force minority shareholders to sell their stake in the company for much less than it is actually worth or to eliminate their ownership position altogether.

The oppressive tactics of majority shareholders are unfortunately a common experience for many minority shareholders in San Diego and Southern California.   This can take subtle forms such as physically locking a minority shareholder out of the premises or refusing to declare appropriate dividends.  It can be as extreme as the majority forming a new corporation and voting to transfer ownership of your company to the new corporation severely watering down the power and value of your shares.

How can a minority shareholder protect their interests and rights?

Resolving Minority Shareholder Disputes in San Diego and Southern California

California provides specific protections for minority shareholders regardless of the state incorporation laws used to form a corporation conducting business in California. The Watkins Firm has more than 40 years of experience resolving minority shareholder disputes in San Diego and Southern California.  If you are looking for an experienced, proven lawyer for a minority shareholder consider the Watkins Firm.

Resolving minority shareholder disputes in San Diego requires the strength and power to force the majority interest to obey the law or put their own position in serious jeopardy.  The Watkins Firm has the power, experience, resources and legal skill to protect and assert your interests as a minority shareholder and force majority interests to comply with the law.

Minority shareholders have the right to access critical information such as the “record of shareholders” as well as corporate financial reports and supporting documentation.  Depending upon the percentage of the company owned and the specific rights established by their holdings, a minority shareholder may also have the right to review the company books and accounting.  There are specific steps which must be followed to gain access to this information when it is denied by the majority ownership.  Our attorneys ensure compliance with federal and state laws while asserting and protecting your rights as a minority shareholder.

Pro-Tip: “Let me give you an example. There’s 10 shareholders in a company and they’re not getting along and they’re fighting. So the majority says, okay, it’s not working. We’re going to sell the company for one 10th of what it’s worth. And then without you knowing about it, the minority shareholders find out two years later that four of the six majority members took jobs in employment with that new company, you’ve just been squeezed out of all your access by votes and by agreements and by people breaching their fiduciary duty.

Another common tactic is a “freeze out”, and it happens a lot. You got management thinking they have the right to do this and that, and you have this angry shareholder over here. And finally, they just say, ‘don’t give them any more documents. Don’t let, them come to any more meetings and don’t pay them any dividends and just ignore them. Change the locks, fire them, terminate their employment…’ they do all these things and say, ‘go ahead, Sue me.’

If the shareholder comes to us, and if we don’t get cooperation, we’ll file a lawsuit immediately. Or if we do get cooperation, we’ll look at it and we’ll try to work out the differences between the parties. Sometimes that’s all it takes is, is somebody in the middle (your Watkins Firm attorney) to explain things to our shareholder client or the corporate client, and to go back and forth and, and educate both sides on what’s wrong. Having an attorney on your side is going to balance some of that playing field. We we get to file lawsuits in a public court that could be reported upon. So if you’re trying to buy a company and all of a sudden there’s a shareholder lawsuit that’s been filed against that company and it won’t be resolved for three years, that’s going to be important to the management of the targeted acquisition company. And any decent and intelligent executive is going to take it seriously, get their lawyers on it and try to resolve it as soon as possible.” – Dan Watkins, Founding Partner

The Right Lawyer for a Minority Shareholder

Are you looking for the right California minority shareholder’s lawyer?  We invite you to review our podcast Episode 14 – Shareholders’ 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.

The Watkins Firm takes a unique approach to resolve minority shareholder disputes in San Diego which is designed to gain the attention of the majority and force compliance with the law in a timely and cost-effective manner. Learn about your rights as a minority shareholder, and a derivative lawsuit and the tactics which can and will successfully protect your investment.

Meet Daniel Watkins:

Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through.  Dan enjoys digging into the facts and finding creative solutions to problems.  He contributes his insights candidly and constructively.

Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.

Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.

He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.

THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR

Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.

In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.