Minority Shareholder Disputes

As a minority shareholder, you may have little to no say in the operations or management of your company. The majority shareholders may be making decisions that you don’t agree with, not following through on their commitments, or acting in their own interests and not yours. Whatever the case may be, it’s important to know that you have options. You can take steps to resolve the situation and protect your interests.

What Is a Minority Shareholder?

A minority shareholder is a shareholder who owns less than 50% of the shares in a company. Minority shareholders have less control over the company than the majority shareholders. However, minority shareholders still have certain rights under the law.

What Are My Rights as a Minority Shareholder?

Minority shareholders have a right to be treated fairly by the majority shareholders. The law requires that the majority shareholders act in good faith and in the best interests of the company as a whole. This means that the majority shareholders cannot make decisions that are solely for their own benefit.

For example, majority shareholders may take excess distributions, pay themselves excessive salaries or use company funds for personal expenses. In these cases, the minority shareholders may be able to take legal action to stop the misconduct, recover money owed to them, and either dissolve the business or force the other shareholders to buyout the minority interest.

How Can I Resolve My Dispute With The Majority Shareholders?

If you’re having difficulty resolving your dispute with the majority shareholders you should speak with an experienced attorney who can help you understand your rights and options under applicable law.

We represent minority shareholders in disputes Orange County and Los Angeles County. If you are being treated unfairly by the majority shareholders of a company, contact us today for an initial consultation to learn how we can help you regain what is owed to you.