Shareholder disputes in small, closely held corporations can involve disputes over management control, shareholder agreements, capitalization, minority shareholder oppression, forced buyouts and disputes involving valuation of minority interests. These disputes can take place among members or managers of an LLC as well.
There are various circumstances that lead to shareholder disputes in public and private corporations including fraud, mismanagement, misleading or withholding information, unfair termination, salary issues and bad faith.
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Minority Shareholders Need Protection
When majority shareholders unfairly take advantage of minorities, they may be held liable for their oppressive conduct. State laws require majority shareholders in public or private corporations to act in good faith, loyalty, fair dealing and full disclosure when dealing with the minority shareholders. However, it is not too difficult for the majority shareholders to oppress the minority, especially when pre-determined agreements were not made in advance.
Victims of corporation shareholder disputes may be eligible for compensation for their losses, which most commonly involves the purchase of their stock or share for fair market value and more.
Partnership Disputes Often Involve Fraud or Misappropriation
Partnerships usually involve strong relationships between two or more partners. Disputes can involve oppression of minority interests, valuation of partnership interests or capital investments, trade secrets and proprietary information, breaches of confidentiality and non-compete agreements.
Because of the complex issues that arise out of shareholder and partnership disputes, it is important to seek the help of an experienced and qualified business litigation attorney who can help you resolve your case successfully.