How do corporate shareholders dispute the non-payment of dividends in San Diego and Southern California? In general terms, a dividend is the payment of the portion of a corporation’s profit that is established in the shareholders’ agreement or other corporate documents and agreements. Some profits, known as “retained earnings”, may be withheld from shareholders and re-invested into the corporation.
Disputes often arise between shareholders and a corporation’s management or Board of Directors when the Board declares a dividend price for the value of a share that is less than an appropriate amount or fraudulently established in bad faith. For example, if the directors vote exceptionally high salaries to themselves or majority shareholders while refusing to declare dividends they may be held personally liable to minority or other shareholders. The minority or affected shareholders can ask the Court to reverse this practice and recognize that the actions constituted an act to disguise rightful dividends, and that the affected shareholders have a right to share in those profits.
The non-payment of dividends in San Diego or Southern California can lead to legal exposure as well as expensive and time consuming litigation. The Watkins Firm has decades of experience resolving shareholder disputes and accomplishing our client’s objectives in a timely and cost-effective manner.
The non-payment of dividends and other shareholder disputes can be quite legally complex. The attorneys at the Watkins Firm have served San Diego shareholders, corporations and corporate boards for decades. We understand the complexities and legal nuances of corporate and shareholder law, and will protect your rights under the agreements of the corporation and California law. If you believe you might have an action for the non-payment of dividends we invite you to contact us or call for a complimentary and substantive consultation at 858-535-1511. Learn more about our unique strategies to resolve potential disputes and shareholder concerns.