Shareholders are an important part of any business and can contribute to the success of the business. Business owners may handle the day-to-day operations of their business, but their shareholders deserve a say in the future of the business.
When business owners attempt to make decisions or changes without shareholder input, they cut shareholders out of the decision-making process. As an investor, shareholders have a right to make their voices heard.
If you feel that your rights are being overlooked, get in touch with our Dallas, TX shareholder dispute lawyers.
Overbearing and difficult shareholders can cause businesses to suffer as well.
If you are a business owner, you may have to deal with shareholders who overstep their bounds and cause damage to your business. Our attorneys are available to help you protect your business from shareholder harassment.
Businesses may face cases involving failure to pay dividends, wrongful acquisition of shares, or wrongful transfer of stock. It is important to resolve shareholder disputes quickly. Often, these disputes can be settled out of court through mediation or negotiation. If you are unable to avoid court, however, our Dallas shareholder dispute attorneys stand ready to help.
A minority shareholder is someone who holds a relatively small portion of shares compared to other shareholders in the company.
These shareholders are equally entitled to having a say in the business, but majority shareholders can make it difficult for minority shareholders to be heard or influence the company.
Majority shareholders can easily “squeeze out” minority shareholders, which can effectively silence them.
Ways majority shareholders may silence minority shareholders include:
Many companies offer their employees shares or a discounted rate on stock. These employees are commonly considered minority shareholders, and they may be wrongfully terminated to afford the majority stockholders more control of the company.
Corporate records are key to making business decisions, and keeping these documents from minority shareholders can be an effective way to silence them. If it is difficult to locate critical and current records, it may be an intentional form of suppression.
Companies may seek to grow by offering more stock options to interested investors, but this has the side effect of diluting the amount of stock a minority shareholder has and reducing the value of the equity.
If majority shareholders decide they are able to turn a profit by buying out the other shareholders, they may seize control.
Without warning, minority shareholders may be receiving a small payment for their shares and a notice that the company will not be offering public stock options.
Shareholder disagreements and partnership disputes can linger and grow into larger problems. We can step in early and work to resolve these issues.
As a shareholder or business owner, you have the right to make your voice heard and to work cooperatively with other interested parties for the benefit of all involved.
Our Dallas shareholder dispute lawyers can help you protect your rights and help your opinion be recognized.
Our lawyers also handle clients with other types of business litigation cases, including:
- Breach of Contract,
- Breach of Fiduciary Duty,
- Construction Litigation,
- Employment Contracts & Agreements,
- Oil and Gas Disputes,
- Real Estate Litigation,
- Commercial Litigation,
- Trade Secret,
- Whistleblower, and
- Corporate Law.
At The Hunnicutt Law Group, we are backed by more than 15 years of legal experience in the area of business law. We can help you with your case, whether it can be resolved through alternative dispute resolution methods or it requires litigation.