There are many proven strategies to resolve minority investor disputes and gain the access and information you need and to protect the value of your interests.  The minority shareholder attorneys at the Watkins Firm guide clients through their legal alternatives based upon the unique circumstances at hand.

California law provides additional protections and rights for minority interests to ensure and protect their rights to crucial corporate information such as the record of shareholders, minutes from corporate meetings as well as the books and all supporting accounting records.

When access to these records is blocked or restricted by majority interests or corporate executives or directors our shareholders rights attorneys take the legal steps to compel compliance with California law while asserting your rights as a minority shareholder.

The proven strategies to resolve minority investor disputes include several options:

Negotiation – It is important to know the Watkins Firm is able to resolve the vast majority of our investor dispute cases through effective, leveraged negotiation.  This is the least expensive and most timely way to accomplish your goals and protect your interests.

Mediation and Arbitration – The Watkins Firm has more than 40 years of experience representing clients in business mediation and arbitration.  Each of these legal venues has unique advantages and disadvantages.  Our job is to protect your interests and accomplish your goals and objectives.

Derivative Lawsuit – an action against majority shareholders, directors and executives of the corporation on behalf of the corporation.  While all “damages” associated with these suits must be given to the corporation itself a derivative lawsuit can protect the corporation and its minority shareholders from mismanagement and oppression tactics which damage the company.

Dissenting Shareholder Actions – designed to protect the value of your holdings in a merger or acquisition;  If you disagree with the proposed merger you may have the right to force the appraisal of your shares and to receive cash for the value of those shares prior to the sale.

Involuntary Dissolution – often referred to as the “nuclear option” in the midst of shareholder oppression, California law provides relief to minority shareholders suffering from unfair tactics of majority interests and corporate management.

Voluntary Dissolution – A tactic by majority interests holding more than 50% of the voting control; Minority interests may not have the power to put a stop to it, but the attorneys at the Watkins Firm can assert and defend your rights, including a strategy seeking to compel judicial oversight of the process.

Pro-Tip: “Let’s say you don’t have a shareholder agreement, or you have a weak shareholder agreement and management has broad discretion to do a lot of things, and they’re getting ready to do some questionable things, to make a big profit. And you come along and say, wait a minute, I think something’s wrong here. And you pose an objection. Well, before you file a lawsuit, this opportunity that management has is still there. So if you are the squeaky wheel right away, before they go forward with whatever they’re doing, then you may profit from that. But if you’re not, then it’ll just happen. And you’ll, instead of being sharing in the profits, you’ll be fighting to claim you had rights to get some money back.

It is important to consider what might be a conflict of interest between their obligation to their shareholders and their own personal interests.

Everybody hears the term conflict of interest and they think it’s something like special or amazing or complicated, but it’s really not. This is the oldest con game. Take the example that you are working somewhere and you get access to checks coming in. So you go form a company in another state. That sounds just like the name on the checks that are coming in. And you start taking those checks and putting them in your own bank account. Well, think about that. If you’re a corporation you’re in management and you have a uncle that forms a company and you start sending business that way, and before, you know it, you taking assets from one company and giving it to another company, which technically you don’t have anything in writing as an ownership of, but you have a conflict of interest and you’re breaching your fiduciary duty. And so if the shareholders aren’t watching these unfortunate scenarios can be quite common. I would say 20% of our litigation every month is based on shareholder disputes fights between shareholders and the corporation and breach of fiduciary duty.” – Dan Watkins, Founding Partner

If you are concerned about actions of majority interests or corporate management and seek proven strategies for minority investor disputes we invite you to review our podcast Episode 14 – Resolving Shareholder 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.