Why is it important to resolve a shareholder dispute quickly and efficiently in San Diego and Southern California? A San Diego shareholder dispute can and will disrupt business operations and management as well as important business relationships.
What Causes a Shareholder Dispute to Erupt in a Corporation?
What causes a shareholder dispute to break out in a corporation? The minds of the shareholders, who are often leaders and/or managers, become distracted by the disagreement, and they take their thoughts off of the day-to-day operations and needs of the business. The impact of the dispute adds up over time, and before long the company itself is often in trouble.
There are many reasons for a shareholder dispute to erupt. In our experience, the majority of serious shareholder disputes relate to a single issue: money. Significant legal disputes rarely develop when a company is struggling. However, when you arrive at success and the money starts to roll in, people change. Unfortunately we’ve seen this pattern far too many times over our 40+ years of experience.
This is why it is so important to get the shareholders’ agreement and bylaws right, up front. Then, it is much easier to point to the agreements and say “this is what we all agreed to up front.” As a business dispute resolution attorney who has helped to resolve thousands and thousands of shareholder disputes I can tell you when you get the corporate documents right up front the likelihood of a dispute down the road is greatly reduced, if not eliminated.
In other cases, one of the parties may feel that other shareholders or investors are not carrying their fair share of the work. Disagreements about the direction of the company, or the distribution of profits in shareholder disputes can disrupt your business and distract the principals from the primary objectives of the corporation.
How to Resolve a Shareholder Dispute Quickly and Efficiently
The Watkins Firm takes a unique approach to shareholder disputes that is specifically designed to resolve them in a cost-effective and timely manner. We understand the importance of your business and the impact a dispute between business owners can have. It may pleasantly surprise you to learn the Watkins Firm is able to resolve the vast majority of shareholder disputes through effective, leveraged negotiation. This is the fastest and least expensive strategy for resolving a business dispute.
We represent clients at every step, including business mediation and arbitration. We work to accomplish our client’s goals and objectives while applying our experience and skill to the problem at hand.
If you are searching on how to resolve a shareholder dispute quickly and efficiently we invite you to review our podcast Episode 11 – Resolving Business 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.
