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Orange County Shareholder Dispute Lawyer

Any publicly-traded company is bound to encounter shareholder disputes at some stage. While many of these disputes are easily resolved privately through internal channels without the need to involve attorneys, other shareholder disputes are more difficult and require professional legal intervention. The attorneys at the Myers Law Group understand the importance of maintaining positive relationships between companies and their shareholders. If your business has recently encountered any type of shareholder dispute, we can help you resolve it as quickly and effectively as possible.

The Myers Law Group has represented companies and business leaders across all industries, and we take time to get to know every client we represent to provide carefully tailored legal counsel. Our team has years of experience navigating complex shareholder disputes on behalf of our clients in Orange County, CA. No matter what your recent shareholder dispute involves, we can carefully investigate every aspect of the issue and help you and other shareholders reach functional solutions. Learn more about shareholder disputes, then contact our firm for help.

What Is a Shareholder Dispute?

A shareholder dispute is any disagreement among shareholders of a business entity. Shareholders may dispute matters of corporate governance, or issues may arise when a larger shareholder attempts to exert excessive influence over business matters without giving minority shareholders due consideration. It’s also possible for employee shareholders to raise disputes with their employers if they believe their status as shareholders isn’t properly compensated. Shareholder disputes may arise if any shareholder breaches the terms of their shareholder agreement.

A shareholder dispute can also arise from a perceived breach of fiduciary duty. Shareholders are expected to work together and deal in an open and honest manner. If it’s discovered that a shareholder has a conflict of interest with another shareholder, or if one shareholder withholds critical information from another, these issues can lead to serious shareholder disputes. Some shareholder disputes can cause direct interference with a company’s day-to-day operations. When company officers are tasked with addressing a shareholder dispute, this can divert attention and resources away from critical functions, deteriorating their ability to effectively manage operations.

How Do You Resolve a Shareholder Dispute?

Typically, the best first step toward resolving any shareholder dispute is to explore internal conflict resolution channels. Every company’s internal governance document should include guidance for these situations. Resolving a shareholder dispute could require little more than an official shareholders’ meeting where the parties in conflict can constructively discuss the issue and work out a solution. One somewhat extreme option for resolving a shareholder dispute is for one disputing party to buy out the other party’s share of the company. However, this is likely to be expensive, and the other party may not be agreeable to the idea at first. In addition, most shareholder disputes are not resolved so easily, and the disputing parties should explore all available internal conflict resolution options before moving to litigation.

Some companies may wish to appoint advisors who can help the disputing parties resolve their issues. These advisors are typically third parties without interest. They provide an objective view of the situation and guide the disputing parties toward a resolution. If this is not a viable option, the parties should attempt to negotiate the dispute privately. Open and thorough negotiations may reveal miscommunications or otherwise assist the parties in resolving their shareholder dispute. If this does not work, the parties can move to mediation.

Shareholder dispute mediation is essentially a private settlement negotiation process that unfolds under the direction of a neutral mediator. The parties involved in the dispute can meet with their respective attorneys or attempt to work out a solution before involving attorneys. Many companies’ internal shareholder conflict resolution policies require private mediation, and these policies will typically include clear directions regarding how mediation sessions should unfold.

When the parties involved in a shareholder dispute cannot resolve their issue privately, or if either party is unwilling to negotiate, the matter can move to formal legal channels for resolution. Litigation can be risky for all shareholders involved, as well as the company as a whole. Specifically, public knowledge of an internal shareholder dispute can damage the company’s reputation and decrease its value significantly, especially if the issue takes a long time to resolve.

What Does It Mean When an Attorney Is a Shareholder?

Choosing an attorney to represent you in a shareholder dispute is a major decision, and it’s vital to select an Orange County shareholder dispute lawyer who can provide objective, comprehensive legal counsel through every phase of your dispute. Additionally, you must ensure your attorney does not hold any conflicts of interest that could inhibit their ability to represent you. Conflicts of interest may also pose ethical concerns.

A conflict of interest is any business connection, investment, or other matter that would influence an attorney’s ability to provide comprehensive and dispassionate legal counsel. When an attorney is a shareholder of a company, they should not engage in any legal matters involving the company in a professional capacity. Make sure the Orange County shareholder dispute lawyer you have selected to represent you holds no conflicts of interest that could pose problems for your case.

Potential Problems Caused by Shareholder Disputes

Shareholder disputes often arise when shareholders act in their own interests rather than in the interests of the company. Some shareholder disputes can significantly damage a company’s reputation, while others can devalue a company’s share price due to sell-offs from other shareholders who see the dispute unfolding. It is also possible for some significant shareholder disputes to frustrate the day-to-day operation and management of the business. This can create tangible losses for not only the shareholders involved in the dispute but all other shareholders as well as the company’s partners and customers. Ultimately, it is best to resolve shareholder disputes quietly and as quickly as possible to avoid these consequences.

Your Orange County shareholder dispute lawyer can help you determine the best available solutions to the issue at hand. Resolving the shareholder dispute effectively can raise confidence among current and prospective shareholders, resulting in a net benefit for the company. However, the longer a shareholder dispute continues, the more damaging it is likely to be for the company and every shareholder.

Orange County Shareholder Dispute Lawyer

What to Expect from Orange County Shareholder Dispute Attorneys

Any shareholder dispute is likely to involve complex corporate governance issues, contracts, and various other legal mechanisms that can be hard to navigate without professional legal assistance. The Orange County shareholder dispute attorneys at the Myers Law Group can help you resolve your current dispute in several ways. First, we will help you review the internal conflict resolution channels that may be effective for addressing the issue at hand. While you can explore some of these options on your own, having an experienced attorney review relevant company policies and documents can help you better understand the situation and make a more informed decision about the direction of your case.

When internal conflict resolution options have proven fruitless, or if the dispute is serious enough that it would be unrealistic to expect these channels to solve the issue, litigation may be necessary. It’s possible for a shareholder dispute to reveal unethical or even illegal actions, including conflicts of interest and disparate treatment of shareholders that violates state or federal laws. Your Orange County shareholder dispute lawyer can analyze the situation and help you determine the best available solutions no matter what your stake in the company may be.

If you prefer to resolve your shareholder dispute through internal mediation, an experienced Orange County shareholder dispute attorney can provide the professional legal guidance you need to approach this difficult situation with confidence. Our team can help you get to the root of your shareholder dispute as quickly as possible, taking full advantage of the private internal resolution channels available. Even when mediation does not produce firm results, it is still possible to reach some common ground with the other party and streamline litigation.

Contact Your California Shareholder Disputes Law Firm Now

The Myers Law Group understands what could be at stake in your shareholder dispute, and our firm has the resources and experience you need to navigate the situation more effectively. We will carefully review the details of your dispute and assist you in assessing all relevant company policies and conflict resolution options available. Any shareholder dispute can entail a lengthy and expensive resolution process. However, uncovering the root of the issue can often expose deeper issues without a company’s governance and encourage greater transparency and cooperation among shareholders. As a result, it is essential to fully investigate your shareholder dispute and utilize the information you gain to have a positive effect on your company.

The Myers Law Group is available to assist you as your Orange County shareholder dispute lawyers. If you have encountered any type of shareholder dispute, our firm can help you resolve the issue as quickly as possible. Contact us today to schedule your consultation with our team and find out how our firm can assist you.

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