Are you searching for proven shareholder dispute attorneys in San Diego or throughout California?  Are you an investor or minority shareholder in a corporation who is concerned about the actions of the management, failure to access the books and important corporate documents or potential fraud?  The Watkins Firm has more than four decades of experience resolving shareholder disputes and protecting the interests of shareholders and investors alike.

Our Experienced Shareholder Dispute Attorneys Resolve Problems and Legal Issues

The Watkins Firm takes a unique approach to resolving shareholder disputes in a timely and cost-effective manner.  Our proven shareholder dispute attorneys are able to resolve most disputes for shareholders and investors through effective, leveraged negotiation.  California has strong laws which protect minority shareholders and investors.  In many cases we are able to quickly gain the attention of management or majority interests while asserting our client’s rights.

When negotiations are not enough to accomplish our client’s objectives a lawsuit can provide additional leverage and access to important information and evidence.  Mediation is required in civil cases here in San Diego.  Mediation is a private, confidential environment which is designed to focus the parties on the issue(s) at hand while seeking a viable resolution.

What is a Derivative Lawsuit?

What is a derivative lawsuit for a San Diego corporation, and when should a shareholder consider this business option?  A “derivative lawsuit” is a type of shareholder dispute, where a minority shareholder or part-owner in a company believes the company’s board of directors has failed to take action, or where the board is not acting in the best interests of the company.  Derivative actions are primarily used in cases of a conflict of interest, or when there has been a breach of fiduciary duty by an officer of the company, a board director, or high level executive.

A derivative lawsuit is actually brought on behalf of the corporation itself and is filed against the directors, executives, officers and/or majority shareholders who are suspected of wrongdoing.

A derivative lawsuit for a San Diego corporation may be the best option if you suspect:

• Fraud
• Illegal practices
• Self-dealing
• Acting in the interest of a third party to the detriment of your corporation
• Mismanagement

Proven Experience Protecting the Rights of Shareholders and Investors

The Watkins Firm brings more than 40 years of experience protecting the rights and interests of shareholders and investors throughout California.  We provide sound counsel regarding the best strategy and how to most efficiently resolve the dispute or issue at hand based upon your unique circumstances.

Our proven shareholder dispute attorney get to the core of the issues quickly and efficiently.  These disputes can become quite legally and financially complex and it is important to work with experienced business attorneys who can protect your interests while working quickly to preserve options for the future.

Pro-Tip: “Do you know what the difference is between a minority shareholder and a majority shareholder? Majority rules, 51% in these agreements. We have things called super majorities in our corporations. We can have shareholder agreements that require super majorities. For example, you’d want a 70% majority before you allow the company go out and take a big loan and use that money, giving it away to the majority. You’d want a super majority before the company go sell the company, terrible things have happened.

You invest in a company, let’s say you’ve got a hundred thousand in it. And the company says we’re going to sell the company for $200,000 and you get 10 cents on your money. And they sell it to a related company. And then they take it public. That happens a lot. So I like to say, when you will become a shareholder, if you don’t plan ahead and do your homework, then you are planning to fight because you’re just making it too easy for people to take money from you if they technically can.

And if you are an active investor, you obviously need help keeping an eye on your investment. So how do you balance the influence of shareholders with what the majority would see as the corporate mission.

Well, shareholders just want to be treated just like other shareholders. And so when you don’t have these safeguards in place, it’s very tempting for management to say, well, I’ve decided I’m going to pay myself more. Technically I need a new car. And technically, the company should lease me a house to stay in.  If you ensure that certain things are in place before you invest a substantial amount of money, and they follow well-crafted corporate documents, what you have is basically a balance of legal stipulations and responsibilities with a simple sense of fairness.

Don’t let the term shareholder or investor make you think you don’t have any rights. They make an offer to sell shares at a certain price and they expect you to go along with it and just say, yes? I mean, that’s, that’s how my wife used to buy cars!” – Dan Watkins, Founding Partner

The Watkins Firm has served the San Diego business community for more than four decades, and have extensive experience in all areas of corporate law as well as shareholder disputes and lawsuits. We invite you to review our podcast Episode 14 – Shareholders Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.  Let’s discuss your unique situation and the best steps available to resolve existing issues or compel legal compliance.