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Minority Shareholder Disputes

We had a great experience working with Mark! He helped us navigate a very complicated shareholders dispute and find a resolution after YEARS of back and forth. It was an extremely complicated case. Mark was very responsive to any and all requests. He did a fantastic job of clearly explaining all legal matters and options that we had to choose from. He listened to all of our concerns and gave us very valuable feedback as to how we could handle our unique situation. We would use him again in a heartbeat.

Hillary P.

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.

Resolving Minority Shareholder Disputes on a Contingency Basis

It is possible that we can litigate your shareholder dispute case on a contingency basis, rather than on a pay-as-you go hourly basis.  Probably because of the dispute and possibly for other reasons, your money may be tied up temporarily.  We understand that, 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.