What are the rights of a dissenting shareholder in San Diego? Are you involved in an investor or shareholder dispute? How can minority shareholders and investors protect their position in a dispute with the majority? When should you assert dissenting shareholder rights?
A discussion of the rights of a dissenting shareholder in San Diego generally falls under the heading of shareholder oppression, when majority interests take action to reduce the strength of minority shareholders and/or the value of their holdings. In the classic example, majority interests approve the sale of the company to a new corporation or a merger with an existing corporation. Imagine your surprise when you discover the value of your holdings in the new company or merger are substantially less powerful and the value of your ownership position has been substantially reduced.
The Watkins Firm has decades of experience in shareholder disputes in San Diego and provides sound counsel in these cases. We work to negotiate the strongest potential outcome for our clients. When a resolution cannot be negotiated we evaluate the options of mediation or arbitration as well as business litigation with our client to determine the best possible strategy based upon your unique circumstances.
While the minority shareholder may not receive cash from a merger, the law may require the majority to provide stock in the new corporation, a more lucrative asset or debt instrument, or stock in another corporation to offset your interest.
The rights of a dissenting shareholder in San Diego under California law include the option to force an appraisal of the value of your shares, and compel the corporation itself to pay you the full market value of those shares before the merger may be completed. Each strategy has advantages and disadvantages and it is important to understand what are dissenting shareholder rights and how can the attorneys at the Watkins Firm protect your interests.
We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Learn how we protect the interests of a minority shareholder and work to achieve the best possible outcome in these cases.