What are the steps for working through a shareholder dispute and preventing one from happening in the future? Disputes between shareholders distract the focus of a business and it’s owners and managers. Today’s business environment is more challenging, competitive, and demanding that at any time in history. The profitable operation and growth of a company require the entire focus and attention of its owners and managers.
When disputes arise between shareholders or members in an LLC the company can lose focus and momentum, resulting in reduced profits and in some cases business failure.
Working Through a Shareholder Dispute Step By Step
The experienced San Diego business attorneys at the Watkins Firm have served corporations and privately held companies in California for more than four decades. We understand the pressures of running a business, and the issues that arise in the relationships or local business professionals. Working through a shareholder dispute or arguments between corporate executives and/or the Board of directors are costly to any organization.
Many business people are surprised to learn that the likelihood of disputes actually increases as a business thrives and the money rolls in. How do you reduce the probability of litigation when disputes between shareholders distract the focus of a business while preventing expensive and distracting business litigation?
The key to preventing a shareholder dispute is the development and continuous update of sound operating agreements and shareholders agreements, as well as corporate bylaws. These critical business documents should be well crafted to anticipate every possible business or personal challenge, while providing specific strategies and contingency plans for handling them should they arise. These agreements specify the roles and responsibilities of each member or shareholder, as well as how income and profit will be handled at each point of your company’s life.
Resolving an Internal Dispute
Resolving an internal dispute between shareholders requires an experienced, steady hand and proven strategy. It may surprise you to learn the Watkins Firm is able to resolve the vast majority of our shareholder and member dispute cases through effective, leveraged negotiation. This is the fastest and least expensive path to resolution.
We represent clients in mediation and business arbitration, depending upon the nature of the dispute, the value of the holdings at stake and the number of parties in dispute. We work with our clients to develop specific goals and objectives and to understand the process of working through a shareholder dispute in an efficient and timely manner.
We invite you to review our podcast Episode 14 – Shareholders’ Rights and 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.
