As a shareholder, when the board members are not acting in the company’s best interest, you have a right to bring suit on behalf of the company. This type of litigation, known as a shareholder derivative lawsuit, can be legally quite complex. You need a skilled and knowledgeable business litigation attorney to guide you through the process and help you assert your rights as a shareholder.
California has recently enacted laws to protect minority shareholders, and to ensure that they have access to important corporate information including financial records. Each shareholder has the right to protect their interests, and when majority shareholders or managing shareholders attempt to “freeze out” a minority interest, they often do so at the expense of the best interests of the corporation. If a shareholder is concerned the corporation’s Board of Directors, executives, or management team are leading the company in the wrong direction or fail to fulfill their fiduciary duties any shareholder can bring a derivative lawsuit on behalf of the company to defend the interests of the corporation.
At the Watkins Firm, our attorneys have extensive experience handling shareholder litigation, including derivative actions. We help shareholders throughout San Diego County enforce their rights and bring actions against board members and corporate executives. To discuss your corporate law matter, contact a San Diego shareholder derivative lawsuit lawyer at our firm.
Bringing a Derivative Lawsuit
Shareholders have a right to bring a derivative action on behalf of the corporation where the board has failed to take action. Derivative actions are used most often where there has been a conflict of interest or breach of fiduciary duty on the part of a board member, executive or corporate officer.
Shareholder derivative actions are more complicated than direct shareholder actions. In these cases, the shareholder is stepping into the shoes of the board and bringing suit for the corporation. At the end of the suit, any damages will be paid to the corporation, not the shareholder.
Our attorneys can help you bring a derivative suit. We will fight to help you enforce your rights as a shareholder and work for the benefit of the corporation.
Retain a Skilled San Diego Corporate Law Lawyer
We are dedicated to helping you resolve your dispute in a cost-effective manner.Contact a California corporate law attorney at our firm for a free and substantive consultation at 858-535-1511.