Allen Barron’s commercial and business litigation attorneys employ several proven strategies for resolving shareholder disputes. Our skilled and seasoned attorneys understand the delicate issues which surround shareholder disputes in San Diego. We have extensive experience advising majority shareholders, corporate executives and Directors on every aspect of the law and their responsibilities to other shareholders and the corporation itself. We provide sound counsel regarding relationships with minority shareholders and how to prevent disputes before they ever arise.

We advise minority shareholders in California regarding their rights and how to legally assert them. We represent and protect them in cases of shareholder oppression, the failure to distribute dividends and attempts to freeze them out or reduce the effective power or financial valuation of their shares.

Most of these cases are resolved through Allen Barron’s skilled negotiation strategies and/or mediation. The clear communication of expectations and demands backed by our effective negotiation tactics and the hammer of potential litigation is often what is required to move the situation forward to a positive resolution.

There are several legal actions available in shareholder disputes, including but not limited to:

Compel access to shareholder records and the books of the entity – Minority shareholders have specific rights to access critical corporation information and records, and Allen Barron ensures all steps are followed to legally enforce these rights and compel compliance.

Voluntary Dissolution – Shareholders or blocks of shareholders with 50% or more of the voting power may vote to voluntarily dissolve the corporation. Minority shareholders with less than 50% voting interest may not be able to stop this process but Allen Barron’s attorneys can assert associated rights such as an order to compel judicial supervision of the dissolution.

Involuntary Dissolution – Often referred to as the “nuclear option” in shareholder oppression of a minority interest, California law provides specific protections to minority shareholders in some instances from the “prejudicial” acts of those in control of the corporation.

Derivative Lawsuit – This is a lawsuit brought on behalf of the corporation itself by minority interests against third parties such as majority shareholders, corporate executives, the Board of Directors or an individual officer or Director. This protects the corporation from violations of fiduciary duty and mismanagement.