Los Angeles Shareholder Dispute Attorneys

Shareholder disagreements have the potential to destabilize an otherwise healthy business if not appropriately handled. Many types of shareholder disagreements can be resolved informally. In some cases, however, conflicts can escalate and warrant the hiring of legal representation. Our Los Angeles shareholder dispute lawyers have decades of combined legal experience and are familiar with all elements of commercial litigation. We help corporations, limited liability companies, shareholders, and officers, directors, or managers take the appropriate legal steps to exercise and protect their rights. Our team at Eanet, PC is passionate about helping our clients achieve their goals, and we provide counsel to navigate these contentious matters.

If you are involved in a shareholder dispute, do not wait to call (310) 997-4185 or contact us online. Payment plans are available. 


Types of Shareholder Disputes

Shareholders are partial owners and investors in a company and therefore have an interest in its continuing and future success. Many types of disputes can develop between shareholders and company owners or officers, but they can also arise between competing groups of shareholders.

Examples of shareholder disputes include:

  • Disagreements over company management or direction
  • Breaches of the shareholder agreement, operating agreement or membership agreements
  • Breaches of fiduciary duty
  • Alleged violations of minority shareholder rights
  • Conflicts of interest
  • Lack of dividends
  • Concern about unlawful activities

Resolving Shareholder Disputes

A shareholder agreement and other key documents such as the bylaws may outline conflict resolution mechanisms. As a shareholder, you will need to honor these terms when navigating disputes. When a grievance develops, you should partner with a legal professional to carefully review the contents of the shareholder agreement. Our attorneys can assess the facts and advise you of your rights and options. 

Litigation is not always the only way. In fact, many shareholder agreements  may require mediation or arbitration before they are permitted to go to court. Formal negotiations could involve internally proposing a resolution that will facilitate an amenable settlement. Taking procedural steps to efficiently remove a problematic officer may also be sufficient. Each situation is unique and will call for a different approach, and we are well-versed in all forms of conflict resolution.

Shareholders or members, or the company itself, may seek to pursue legal action if company officers, directors, or executives violate their fiduciary duties. Company executives and directors generally owe fiduciary duties to their corporation’s shareholders. This means they must act exclusively in the best interests of those shareholders and not “self-deal” or act to benefit a third party. Executives, directors, and officers may violate their fiduciary duties if they fail to disclose or avoid conflicts of interest or if they are guilty of committing illegal or fraudulent acts in their capacities as the corporation’s leaders. 

Winning a breach of fiduciary duty lawsuit requires proving the existence of a fiduciary relationship, that a breach occurred, that actual damages were incurred, and that the damages were directly caused by the breach. Our firm has substantial experience proving these elements on behalf of shareholders and delivering favorable results in these cases. We can also defend fiduciaries against these claims. 

We Understand the Complexity of Shareholder Disputes

Our team at Eanet, PC is made up of skilled litigators who have argued cases before courts throughout California. We understand the intricacies and nuances of corporate law and can assist claimants and defendants in these matters. Our Los Angeles shareholder dispute lawyers offer cost-effective services and will work to diligently identify and solve whatever conflicts you are facing.

Schedule an initial consultation to learn more about how we can help you navigate your shareholder dispute. Call (310) 997-4185 or contact us online to get started.


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