What is the most timely and efficient strategy to resolve a conflict between shareholders or investors in San Diego or Southern California? Shareholder disputes in San Diego are unfortunately common between owners, shareholders and investors in corporate entities. Shareholder and investor disputes are usually about one thing: money. Many people think that disputes and business litigation increases when times are tough or when something has gone poorly. Quite the contrary. Disputes between shareholders most often occur when business is booming, and when the associated numbers and profits grow larger and larger.
Examples of a Conflict Between Shareholders or Investors
There may be concerns about misappropriation of funds, the failure to declare rightful dividends or even questions regarding accounting and the financial books. There may be a person or persons who are acting in their own interests in violation of their fiduciary duty. There might be a disagreement over a hiring or firing decision, expansion versus internal reinvestment, or simply differing opinions or incompatibilities which make the business relationship difficult. In more aggressive situations, strategies such as squeeze outs, freeze outs, denial of access to the books and/or corporate records threaten your position, investment and rights.
In many of these cases the parties perceive a different interpretation of the controlling corporate documents such as the operating agreement or shareholders’ agreement. Their argument of “hey, we just disagree…” doesn’t protect your investment of time and money or the future of your holdings. You must assert your rights as a shareholder or investor in order to protect your interests and get the answers to your questions.
There is simply much more at stake, and not just in terms of money (although it always comes back to money). Conflict between shareholders and investors often come down to issues of control, and success breeds a desire to have more of a say in how rising profits are invested and divided. This isn’t simply a matter of greed, it’s about protecting and maximizing your position and the profitability that position generates.
Resolving Conflict Between Shareholders or Investors
The Watkins Firm employs a unique and proven strategy to resolving conflict between shareholders or investors which is designed to accomplish our client’s goals and objectives in a timely and cost-efficient manner. In most cases we are able to resolve these disputes through effective, leveraged negotiation. Shareholders and investors have rights and our attorneys take proven, effective steps to gain the attention of the other party and begin work to resolve the issue(s) at hand.
In some cases this may require clarification or modification of existing LLC operating agreements or the shareholders’ agreement. The effectiveness of the shareholder agreement and corporate documents will do a lot to protect your position and the strength of your corporation. Effective corporate documents anticipate all potential scenarios, and address them in advance.
This leaves less room for misunderstanding, manipulation, game playing and in the end disputes and business litigation. Shareholder and investor disputes distract business ownership from the primary focus of running the business and building upon success. The attorneys at the Watkins Firm have decades of experience in drafting corporate documents and shareholder agreements that foster smoother business operations. When a dispute or litigation arises we work effectively to resolve these disputes in an effective and cost-efficient manner.
If you are concerned about shareholder disputes in San Diego we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today to protect your interests.
