Shareholder Dispute Lawyer Charlottesville Virginia
A shareholder dispute is a disagreement between shareholders about the governance of the business. Shareholder disputes can be a big hindrance to the success of any business, as they can interfere with daily business operations. They’re one of the most common reasons companies experience operational and financial problems. Because these disputes have such severe consequences, it’s ideal to avoid them in the first place. A shareholder dispute lawyer in Charlottesville Virginia, like Dale Jensen, PLC may be able to help.
Here are some of the most common causes of shareholder disputes.
Disagreements About Managerial Issues
One of the most common disputes a shareholder lawyer in Charlottesville Virginia sees is about where managers are trying to take the company. From hiring and firing employees to making expensive purchases and taking on new debt, there are many managerial issues that could affect the future of a company.
Fiduciary Misdeeds
Shareholders have fiduciary duties toward one another. This means they have an obligation to act in the best interest of each other. Their legal obligations include honesty, loyalty and other responsibilities related to placing the business interests first. Unfortunately, not all shareholders abide by these responsibilities. In the most severe cases, breach of fiduciary duty can result in embezzlement and other criminal charges.
Conflict of Interest
A shareholder dispute lawyer in Charlottesville Virginia has also dealt with disputes that result from conflict of interest. For instance, a shareholder might get involved in another business that competes with yours. In this situation, a shareholder isn’t looking out for the best interests of your business.
Minority Shareholders Don’t Have Any Say in Decisions
While minority shareholders don’t have as much power as majority shareholders, they should still have some say in major decisions regarding the company. However, some minority shareholders may feel like they can’t influence big decisions at all and feel left out. They may bring lawsuits against the majority stockholders if they feel oppressed. To prevent these issues, a business litigation lawyer Charlottesville, VA residents trust may recommend adding a clause to specify the rights of your minority shareholders. This may help prevent conflicts in the future.
Differences in Compensation
In an ideal world, shareholder employees are compensated based on their experience and training. Unfortunately, however, sometimes these employees are paid unfair rates. When this occurs, conflicts can arise.
Breach of Shareholder Agreement
Breaches of shareholder agreement can include everything from selling their shares in violation of the agreement to making a decision for the company without the required majority shareholders. If a breach of shareholder agreement occurs, a major dispute can result and a shareholder dispute lawyer in Charlottesville Virginia may be needed.
A shareholder dispute lawyer in Charlottesville, Virginia at Dale Jensen, PLC understands that few issues are quite as damaging to a business as a shareholder dispute. Finding a resolution so that the shareholders can continue working together smoothly sometimes takes help from an experienced legal professional who has negotiation skills and knowledge of business. The best defense against a dispute with a shareholder is to have a properly drafted agreement in place from the very start. If you are interested in making changes to an outdated agreement or drafting a completely new document, we can certainly help you with that too.
A Business Litigation Lawyer Charlottesville, VA business owners trust can provide assistance for various shareholder disputes, including but not limited to: direction of the company, management, personal problems that are interfering with business, fiduciary misdeeds, conflicts of interest, and more.
Fiduciary Misdeeds
Shareholders of a corporation have fiduciary duties to one another, whether they are employed by that business or not. At the very minimum, shareholders must deal with each other with an honest and open manner, while remaining loyal to the company. This is also true for majority shareholders when dealing with minority shareholders. Shareholders who have conflicts of interest, such as holding back crucial financial details from other shareholders, can result in complicated disputes. If this sounds like a dispute you are trying to resolve, do not hesitate to contact a Virginia shareholder dispute lawyer in Charlottesville right now for guidance.
Breach of Shareholder Agreement
A breach in shareholder agreement must be handled promptly and with support from a legal professional who has long-term experience dealing with these issues, such as a Charlottesville shareholder dispute lawyer at Dale Jensen, PLC. Examples of breaches that can happen include one shareholder wanting to terminate an agreement against the preferences of all other shareholders, or a shareholder selling their share which violates terms in the agreement.
Direction Disagreements
A more common reason that shareholder disputes arise is due to not agreeing over the direction of the company. This happens more often in closely-knit small family businesses. As your VA shareholder dispute lawyer in Charlottesville may explain during a consultation, if decisions are made regarding the direction of the business without consulting with shareholders, it can trigger a backlash. Other choices that can turn into disagreements include letting go of non-shareholder workers, big purchases, moving the business, or outlay of capital.
Contact Dale Jensen, PLC Today
Shareholder disputes can cause friction and even interfere with everyday business operations. We understand that finding a resolution is likely your top priority, and that you want the matter to be solved before it can worsen. Please contact Dale Jensen, PLC today to get the help you need from a VA shareholder dispute lawyer.
If your company is dealing with a shareholder dispute, you should consult a shareholder dispute lawyer Charlottesville, Virginia clients trust as soon as possible. He or she can assess the situation and mitigate any damage.