What happens when a shareholder becomes involved in a dispute with a corporate Board of Directors?  Genuine disagreement can arise regarding the direction of the company and corporate strategy.  What steps should a shareholder take if this is a concern?

Often, disputes between a shareholder and a Board of Directors involve personal relationships and the behavior of one or more of the parties.  Concerns may be based upon the influence of an outside company owned or controlled by one of the Directors, and the influence of that relationship upon the corporation.  Shareholders may be concerned whether the Board is meeting its legal responsibilities and duties, and whether conflicts of interest are clouding the actions of the Board.

The experienced business and corporate attorneys at the Watkins Firm have deep experience resolving disputes between shareholders and their Board of Directors.

Minority shareholders may have additional protections under California law.  When a minority shareholder is concerned about the action of a board member or the board in general it is important to take action to protect their investment and the security of their position.

A dispute with a corporate Board of Directors may require the shareholder to file a “derivative lawsuit.” In a derivative action the shareholder files a lawsuit against the Board on behalf of the Corporation.

Other disputes may be best managed through negotiations, and ultimately mediation or arbitration.  Business litigation to resolve a dispute with a Board of Directors can be time consuming and costly.  Our attorneys provide insight and counsel into the dispute, and help to develop strategic options and goals for the resolution of the core issues.  We take prudent and consistent action to resolve these disputes in a timely, cost-effective and efficient manner.

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.