San Diego Shareholder Disputes Can Be ResolvedResolve a San Diego shareholder dispute in a timely and cost-effective manner.  The experienced shareholder rights and business litigation attorneys at the Watkins Firm take a unique approach to resolve a shareholder dispute.

Shareholder disputes can arise for many reasons.  Shareholders who invest in a company have certain legal rights, even if they hold a minority of the shares. When the day-to-day management of the company is concentrated in a small group of managers, enforcing those rights may require skilled legal assistance.

What is the reason shareholders have invested in a business in the first place? The answer is simple: money.  How are you as a shareholder going to profit from your position as a shareholder in a corporation?  You should have the right to receive distributions based upon the corporation’s profit or performance.

However, the directors of the company are not required to declare dividends.  You should also have the right to sell your shares in the corporation, although there are often limitations on transferability.

What are your voting rights?  The second most important right of a shareholder is usually associated with the right to vote on important issues facing the company as well as the right to elect directors to the Board of Directors.

Most shareholders have some form of inspection rights.  Do you have right to inspect corporate documents such as corporate minutes, shareholders’ agreement and/or bylaws? Do you have the right to inspect the books?  What happens if you are concerned about the accounting?

At the Watkins Firm, we help shareholders assert their rights through litigation if necessary. We also advise companies on steps they can take to clarify shareholder rights in order to avoid potential conflicts. For a free, no-obligation consultation we invite you to call 858-535-1511 or contact a San Diego shareholder rights lawyer at our firm.

Asserting Your Rights as a Shareholder

Minority Shareholder Dispute in San Diego

Our corporate law attorneys help corporate and minority shareholders, who have been subjected to unfair treatment and other violations of their rights. We assist them in pursuing positive resolutions through effective litigation strategies.

Depending on the circumstances, a shareholder may wish to sue the company directly or may wish to bring a shareholder derivative suit against management on behalf of the company. Common types of shareholder rights litigation in California include the following:

California law provides a mechanism known as an “Involuntary Dissolution of the CorporationThe Nuclear Option of Involuntary Dissolution in a Minority Shareholder Dispute” whereby under a vote by half of the directors (5o%) or one-third of the shareholders (33.33%) the group can sue for involuntary dissolution.  The corporate dissolution must involve a Court supervised liquidation of the either a sale of the company or it’s corporate assets.  There is a potential antidote to an Involuntary Dissolution whereby at least half (50%) of the corporation’s shareholders must pay cash to purchase the shares of those who initiated the Corporate Dissolution itself.

Whether your concerns are directed at other shareholders who are violating your rights or the executive team, board of directors or corporate managers who are violating their corporate duties to some or all of the company’s shareholders, we can help you choose an appropriate strategy.[


Listen to one of our Recent Sound Business Insights Podcasts:

“Episode 14 – Shareholders’ Rights and Disputes”

Watkins Firm Sound Business Insights - Episode 14 – Shareholders’ Rights and Disputes


Avoid Shareholder Conflicts With Careful Planning

Protecting Business Owners in Employment DisputesIf you are starting a new company or issuing shares in an existing company, you should consider how best to avoid the potentially costly and destructive consequences of shareholder litigation through careful drafting of shareholder agreements and bylaws.

The likelihood of eventual shareholder conflict is particularly high if you have a relatively small number of shareholders and not all of them are directly involved in management.

The Watkins Firm has more than four decades of experience in matters involving shareholders’ rights and/or a shareholder dispute. We have an extensive, proven track record of success in managing all aspects of the sharholder experience.

What concerns you?  Our proven shareholders’ rights attorneys add power and urgency to your side of the equation.  We will stand up for your rights as a shareholder and seek a timely and cost-efficient resolution to any challenges you may face while accomplishing your goals and objectives for the matter.

Hire a California Shareholders’ Rights and Dispute Resolution Lawyer

If you are interested in resolving a San Diego shareholder dispute or have questions about a derivative lawsuit or other potential action we invite you to review the strong recommendations of our former clients and contact our California shareholders’ rights and dispute resolution attorneys or call 858-535-1511 for a free, substantive consultation.[