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- Shareholder Disputes
Shareholder agreements help businesses run smoothly. Shares of stock serve as the capital of the corporation in running the company. Stock certificates are the best proof of ownership and are issued by the corporation to the transferee or buyer upon purchase or acquisition of the shares. Details pertaining to the acquisition will be indicated in the stock certificates.
Shareholder disputes can arise for many reasons, but some common causes include:
- Dividend policies
- Separate business interests
- Breach of the directors’ duties
- Disparities between salaries
- Exclusion from meetings
- Company strategy and/or management
- Failure to provide accounting, statutory and financial information
Some shareholder disputes are inevitable. Shareholder disputes can develop when conflicting allegations between different individuals claiming to have interests over the company's shares argue over the ownership of the stocks. While stock certificates may determine who owns the shares, they alone are not conclusive. Stock certificates can be subject to controversy and scrutiny, eventually leading to a shareholder dispute.
If you are involved in a shareholder dispute, fill out the free case evaluation form on the right. At no cost to you, we will determine whether a commercial litigation attorney can assist with your shareholder dispute claim.