Attorneys Protecting Minority Shareholder Rights in San Diego
What are the rights of a minority shareholder in California? What is the best strategy to protect your rights as a minority shareholder and assert those rights to gain access to needed and protected information? It is not uncommon for minority shareholders to have their rights and interests subordinated or ignored by majority shareholders. While it may appear that the majority interest in a corporation have substantial power, it is not unlimited. California law provides protections for minority shareholders, and specific rights which cannot be limited by or compromised by the actions of majority shareholders or even changes to corporate bylaws and other corporate documents.
In California, minority shareholders have the right to access crucial information about the corporation in which they hold an interest. They have the right to inspect the “record of shareholders” as well as the right to inspect the books, accounting records and the minutes of corporate meetings or proceedings.
Attorneys Who Protect Minority Interests
The Watkins Firm brings decades of experience protecting minority shareholders rights in San Diego and Southern California. All parties seem to have the best of intentions when a corporation is formed or when they invest in a stake in a corporation.
However, it is not unusual for the parties to change or evolve their own goals and objectives for this investment over time. Ideas regarding the direction of the corporation or market perceptions may change or fall out of alignment. It may seem as if the corporation itself may have a larger incentive to cater to the majority interest and those who wield power in the organization.
Our attorneys help to balance the power in these situations and hold the majority interests and executives of the corporation to higher standards under California and federal law. The experienced shareholder’s rights attorneys at the Watkins Firm work to keep our clients informed and to ensure access to important corporate information. We work to break majority tactics such as a “freeze out” or other shareholder oppression strategies designed to minimize the effective voice of a minority interest or worse, affect their rightful share of the profits.
Inspection of the Record of Shareholders
California law provides the right for minority shareholders to inspect the corporation’s “record of shareholders.” Shareholders who have a 5% stake in the company or a 1% stake and have filed specific federal forms have the right to inspect and copy the corporations record of shareholders with an appropriate notice of 5 business days. These laws also provide the right to obtain a current list of the names and addresses of voting shareholders including a record of the shares they presently hold. Even shareholders who do not meet the 5% or 1%/Schedule 14B requirements above have a right to access this information when the Watkins Firm provides evidence this information is “reasonably related” to the shareholder’s interests.
Inspection of a Corporation’s Accounting, Books and Records
California and federal law also provide minority shareholders with the right to inspect the corporations accounting books, corporate records and minutes of any corporate proceedings. The inspection of this information must be shown to be reasonably related to the minority shareholder’s interests. Watkins Firm attorneys ensure all requests and actions are properly documented and executed. We work to help you gain access to the crucial information necessary to protect your investments and interests.
Contact Experienced Attorneys Who Represent Minority Interests in San Diego
Are you looking for a law firm who has the power, experience and legal skill necessary to protect you and your interests as a minority shareholder in San Diego? The Watkins Firm has served the San Diego business community and corporate shareholders for decades. We invite you to review the recommendations of our clients and contact us or call 858-535-1511 for a free consultation. We will help to protect and assert your rights as a minority shareholder.
Do Minority Shareholders Have Rights In California?
Yes, minority shareholders are protected by California law and experienced minority shareholder attorneys can help you to protect your interests.
Do You Have the Right to Inspect Company Shareholder Records
California law provides the right for minority shareholders with at least 1% interest to inspect the corporation’s “record of shareholders” under specific circumstances.
Do Minority Shareholders Have the Right to Inspect the Books
Yes, California and federal law provide minority interests with the right to inspect the corporations accounting books, corporate records and minutes of any corporate proceedings.
Can a Minority Shareholder Put a Stop to Shareholder Oppression
Yes, minority shareholders have rights under California and federal law and there are many strategies to protect the interests of minority shareholders.