The Watkins Firm has decades of corporate law experience and providing advice and counsel in a minority shareholder dispute in San Diego and the surrounding region. California law provides extra protections for the minority interest unless corporate by-laws or shareholder agreements specifically address such issues directly. Some minority shareholder rights cannot be changed, even in corporate by-laws or agreements such as the right to access specific corporate information. Minority shareholders in California have the right to examine the record of shareholders, as well as the accounting “books”, records and minutes of corporate meetings and proceedings.
The denial of access to this information is a serious matter here in California, and the Watkins Firm has decades of successful experience in cases representing clients in a minority shareholder dispute in San Diego and surrounding counties. Denial of access to critical information or elements of decision making is often known as a “freeze out.”
In other cases the concern of a minority shareholder may be focused upon wrongdoing by those with control of the corporation. If you are concerned about improper payments, excessive compensation or distributions, the misappropriation of funds, “sweetheart” transactions with outside companies that majority ownership may have a personal interest in, or the breach of contract or fiduciary duty we invite you to contact us.
You have options, and there are legal remedies that “have teeth” to get the attention of majority owners and protect your rights and interests. One of these legal remedies available to a California Court is to order the liquidation of the corporation, even if it is solvent, when it is necessary to protect minority interests from “oppression” or “persistent unfairness.” The Court may even find a basis for ordering a change in the control of the corporation. The Court may award liquidated damages up to and including reasonable attorneys fees in some cases.
If you are a minority shareholder who is experiencing shareholder oppression, a freeze-out or other strategies to keep you from the day-to-day operations and information of the corporation you own an interest in we invite you to contact us or call for a free consultation at 858-535-1511.