Are you concerned about action taken by your CFO, CPA, accountant or bookkeeper? Are you concerned about potential fraud or theft? An action for accounting refers to an action in equity intended to uncover facts about revenue, disbursements and routing of funds or assets that likely have been concealed. An accounting is further designed to obtain from the court the appropriate form of declaratory relief, which is where the court reviews all of the evidence obtained and declares the rights, duties, liabilities and in some cases, may order injunctive relief.
An action for accounting is customarily brought in equity, for the purpose of securing a formal statement of account from one partner or shareholder to the others in order to obtain a judicial determination of the rights of the parties in a shared asset, such as a corporation. An action for accounting may also be brought in matters alleging misappropriation, mismanagement or mishandling of corporate funds or assets; where the amount of money misappropriated by defendants’ wrongful acts cannot be readily ascertained by plaintiffs because the accounts are too complicated to simply attach a fixed sum as one might see in a standard lawsuit.
In cases such as this, proper assignment of the appropriate relief must be ascertained only through an accounting. The knowledgeable San Diego business law attorneys at the Watkins Firm can facilitate said accounting and resolve shareholder disputes.
A shareholder may bring an action for an accounting where he or she finds reason to believe that an officer or director:
- has breached one or more of their fiduciary duties;
- has refused or failed to provide the obligatory financial and accounting information to its shareholders;
- has violated the terms of the governing shareholder agreement;
- has been wrongfully diverting, mismanaging or misappropriating funds, or otherwise, cheating the shareholder(s).
In the event you believe cause for a shareholder dispute may exist, contact the experienced San Diego business law attorneys for an obligation-free consultation at 858-535-1511 or you may email us at: firstname.lastname@example.org