Are you searching for experienced and proven San Diego and Southern California shareholder dispute attorneys? The experienced investor and shareholder dispute attorneys at the Watkins Firm have more than four decades of experience protecting shareholders against breach of fiduciary duty by the majority interest.
Shareholder Oppression or Breach of Fiduciary Duty
There are several ways in which majority shareholders attempt to take advantage of their position against the interests of minority shareholders, and this is commonly known as “shareholder oppression” across the United States. Unfortunately, here in California there is no basis in law for a legal action (lawsuit) based upon “shareholder oppression.” That doesn’t mean we can’t protect your interests and investment. California law provides important protections for all minority shareholders and investors. Here in California, the majority interest or shareholder(s) owe a fiduciary duty to other shareholders and investors. Therefore, many of the adverse actions taken against minority shareholder and investor interests are likely to involve individual or multiple counts of a breach of fiduciary duty.
Common Examples of a Breach of Fiduciary Duty
The Watkins Firm has more than 40 years of experience protecting shareholders against breach of fiduciary duty by the majority interest in their company. Breach of fiduciary duty is unfortunately quite common. While these cases are more often found in closely held corporations, they can absolutely occur in a large company or through the actions of a Board of Directors. These shareholder disputes often result in business litigation as the minority shareholders must file a lawsuit to protect their interests.
Typically, instances of breach of duty involve tactics that deny a minority interest their fair share of the profits. The underlying relationships can become tenuous, and other harassing forms of behavior begin to take place. Examples of breach of fiduciary duty include, but are not limited to:
- Failure to give dividends to minority shareholders
- Self-dealing
- Commingling or embezzlement
- Firing a minority shareholder as an employee
- Unfair business practices
- Majority shareholders voting pay raises and other compensation that is too high or that dilutes rightful profits
- Physically locking minority shareholders out of the premises
- Refuse to let minority shareholders inspect the books
Another common breach of fiduciary duty tactic is known as the “Squeeze Out” or “Freeze Out.” In essence, the majority owner(s) approve a merger with a new corporation (which they own), and the shares of the existing company are bought out as part of the transaction. This attempts to force the minority shareholders to take a cash payment which is far less than the value of their shares as compensation for forcing them out of the “new” company. There are proven defenses which the Watkins Firm may bring on your behalf which can either put a stop to their plans, or force fair value compensation to protect your interests and investment.
Protecting Shareholders Against Breach of Fiduciary Duty By the Majority Interest in San Diego
Are you search for an attorney with extensive experience and a proven track record protecting shareholders against breach of fiduciary duty by the majority interest? If you are a minority shareholder and you believe you may be a victim of shareholder oppression or are being denied your rights as a corporate shareholder we invite you to review our Podcast Episode 17 – Violation or Breach of Fiduciary Duty, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. We will review your position in the company, all that has happened and apply our decades of experience and expertise to develop options and strategies that will help you to accomplish your goals.
