Shareholder Disputes Lawyer
Serving WV Eastern Panhandle
Trump & Trump, L.C. Earns the Trust of Shareholders to Resolve Disputes
Corporations operate best when owners agree on the mission and goals of the company. While not every organization runs smoothly all the time, there can be significant disputes that arise among shareholders of the corporation. These may come from one or more shareholders’ interests that conflict with what other shareholders agree or allow. Such disputes may relate to inspecting records, or something more serious such as illegal or fraudulent activity. Give us a call today in Martinsburg at (304) 267-7270 or Berkeley Springs at (304) 258-1414 or contact us online today to schedule a consultation regarding the shareholder dispute you wish to discuss.
Dispute Resolution to Uphold the Rights of Shareholders
Trump & Trump, L.C. provides dispute resolution services designed to uphold the rights of shareholders who may have significant concerns about a corporation’s equity or distribution of profits. The types of disputes that may arise among shareholders include:
Breaching the Shareholder Agreement – If a shareholder sells their shares in violation of the agreement, sells to a competitor, or desires to terminate the agreement against the wishes of the other shareholders.
Different Compensation or Contribution – Conflict may arise if a family member or employee does not contribute their fair share. Compensation of shareholder employees ought to be both fair and commensurate with their experience, training, and industry.
Disagreements Over Direction – Decisions on the corporation’s mission, goals, purchasing/operations, or other directives may cause dispute in closely held small family corporations.
Fiduciary Misdeeds – Shareholders of privately held corporations have fiduciary duties to each other and must deal with each other in an open, honest, and loyal manner. This is particularly true of majority shareholders in dealing with minority shareholders. Shareholders who have conflicts of interest or withhold vital financial information from other shareholders can trigger major disputes.
Minority Shareholder Oppression or ‘Getting No Respect’ – With fewer shares than majority shareholders, minority shareholders in private corporations are at a disadvantage, and they may feel ineffective in seeking change in the company. The state recognizes and protects the rights of minority shareholders, who may be frozen out of decisions or management positions. Their investment is not marketable and tied to the whim of the majority shareholders who may not have their best interests of the minority holders in mind. Oppressed minority shareholders can bring suits against the majority stockholders for a variety of situations such as not being issued dividends, corporate funds being used to pay family expenses, and failing to allow minority shareholders to inspect corporate documents.
Shareholder Agreements in WV Available from Trump & Trump, L.C.
Every shareholder has a financial stake in the business, so a business dispute involving shareholders can be more complex. The best defense against a shareholder dispute is to have a strong, well-drafted shareholder agreement in place from the start. If your company needs to draft a shareholder agreement or you require guidance on a current shareholder dispute, contact the team at Trump & Trump, L.C. today.