Disputes Between Board Members

Board members are required to disclose conflicts of interest that might influence their decisions. Those with a conflict of interest may be prohibited from voting on the issue. 

When board members fail to disclose conflicts of interest, litigation is a likely result and the most likely way to find a resolution, avoid or minimize further conflicts, and recover losses.

Often violations of corporate bylaws lead only to the internal discipline of board members. Even so, because shareholders tend to be affected by decisions of the board, shareholders may sue when violations occur. Litigation may be their only recourse, and it may be necessary to protect the company (and sometimes even consumers or the general public).

Violations of corporate bylaws rarely are accidental. The cases we see involve breaches of fiduciary duty, misuse or misappropriation of resources, inflating or creating misleading financial data, inflating executive compensation, making decisions that expose the company to harm, or decisions that lead the company to violating regulations or laws.

Don’t let board members’ disputes drag down or take down your business. Chatow Law can help. Based in Newport Beach, we work with clients throughout California. Contact Chatow Law to schedule a free consultation and to discuss your situation.

It is possible that we can litigate your termination of contract case on a contingency basis, rather than on a pay-as-you go hourly basis.  We understand that your money may be tied up temporarily, which is why we may be able to work you in such a way that you only pay a percentage of the settlement or judgment if and when we win your case and you collect your award.  You can find out more about the contingency business litigation option here.