The Watkins Firm Protects and Asserts the Rights of Minority Interests
The Watkins Firm has decades of experience holding the majority interest accountable to California law on behalf of all shareholders. It doesn’t matter where the Corporation was founded, or which state’s laws were used to establish the corporation itself. If you own a minority interest in a California business the Watkins Firm will protect your interests and assert your rights to protect the investment you’ve made.
California protects minority shareholders by preventing the directors, executives and majority interests in a corporation from using their power and position to manipulate circumstances or take action which is detrimental to minority shareholders or the corporation itself. Majority shareholders, corporate executives and the Board of Directors owe a fiduciary duty to the corporation itself as well as it’s minority shareholders. Generally speaking, this fiduciary duty requires the parties as individuals or a team to act in good faith and in the best interests of the corporation and to apply sound business judgment in every action and decision they take.
What Action Can The Watkins Firm Take to Protect Your Minority Interest?
There are several options available to the Watkins Firm as we work to protect your interests. If the directors or majority have made a decision which represents shareholder oppression or is detrimental to your interests as a minority shareholder we can have it set aside in Court.
A famous case in California shareholder law is known as “Remillard Brick.” In this case the majority shareholders of two corporations attempted to transfer sales functions to a third corporation which they owned. The majority owners claimed the minority knew they owned controlling interests in both corporations and the contracts had been approved by the majority shareholders which technically satisfied the legal requirements of contracts between corporations with common ownership. The California Court of Appeals disagreed. While the majority interests had literally followed the laws under the Corporation Code, the Court ruled the contracts could be set aside because they were unreasonable and unfair to the underlying corporations. The Court pointed out the importance of the fiduciary duty and noted that without (the protections of California law) the majority interest of any corporation could liquidate the assets of a corporation for their own benefit as long as they disclosed their interests and purpose, leaving the minority shareholders with no recourse.
You do have recourse as a minority shareholder while holding the majority interest accountable to California law to the highest standards of duty and responsibility. The Watkins Firm will work to protect your interest and accomplish your goals. Majority shareholders, directors and controlling shareholders are fiduciaries who must execute their responsibilities and who derive their power to make decisions “in trust, for the benefit of the corporation and all of it’s stockholders.” If they are not acting in good faith, there are several options for holding the majority interest accountable to California law including but not limited to:
Negotiation – most of these cases can be resolved through effective leveraged negotiation. The Watkins Firm will gain the attention of majority interests and assert your rights to resolve shareholder oppression. You may wish to achieve a favorable and successful buyout of your position in the company, a takeover or simply enforce your rights to access.
Derivative Lawsuit – The Watkins Firm can bring a derivative lawsuit on behalf of the corporation to protect the interest of a client with a minority interest.
Voluntary Dissolution – The shareholders of a corporation may vote to close the corporation and divide the company’s assets and remaining profits.
Involuntary Dissolution – minority shareholders may force the involuntary dissolution of a corporation based upon fraudulent acts, abuse of power or mismanagement by the majority shareholders.
Contact Experienced Minority Shareholder Attorneys in San Diego
Are you looking for a law firm who has the power, the legal skill and the experience holding the majority interest accountable to California law on behalf of all shareholders San Diego? The Watkins Firm has served the San Diego business community and corporate shareholders and resolved minority shareholder disputes for decades. We have a unique approach to shareholder disputes which is designed to resolve your challenges in the shortest possible time frame and in a cost-efficient manner. We invite you to review the recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a free consultation. We will help to protect and assert your rights as a minority shareholder.