Discuss Your Options with an Experienced Miami Shareholder Dispute Attorney
Disputes between shareholders can disrupt a company’s operations, and in some cases, they can threaten a company’s viability as a going concern. But, regardless of the issues at hand, in almost all cases a certain and cost-effective outcome will be in the best interests of all parties involved. If you are dealing with a dispute as a shareholder, we can help, and we encourage you to speak with an experienced Miami shareholder dispute attorney at Edelboim Lieberman.
We handle all types of shareholder disputes in South Florida. Whether you need to protect your company’s interests or you are facing allegations of misconduct as a shareholder, we can help you make informed decisions focused on protecting your investment. When you schedule a complimentary consultation, one of our attorneys will sit down with you to go over your options in detail, and we will give you the information you need to make sound decisions going forward.
Our Miami Shareholder Dispute Attorneys Represent Shareholders and Companies in All Types of Shareholder Disputes
Shareholder disputes can involve a variety of complex issues. This includes not only complex legal issues but complex factual issues as well. In fact, in many cases, it will be a misunderstanding or conflicting interpretation of the facts that lead to a dispute among shareholders. In these scenarios, an amicable solution is often possible, and, with the right approach, shareholders can resolve their disputes with minimal long-term ramifications.
Of course, not all shareholder disputes are so straightforward. Many are highly contentious, and many involve millions—if not tens or hundreds of millions—of dollars in shareholder value. In these cases, achieving a favorable result is often a much more complicated and nuanced process, and each party must work with a highly experienced Miami shareholder dispute attorney to ensure that it is acting with its best interests in mind.
At Edelboim Lieberman, we represent shareholders and companies in disputes involving:
Breach of Shareholders’ Fiduciary Duties
Shareholders owe fiduciary duties to their companies, and when they breach these duties, other shareholders can hold them accountable. While fiduciary breaches in the corporate context can take many different forms, some examples of claims we see regularly include:
- Failure to act in accordance with a shareholder’s duty of loyalty
- Failure to perform a shareholder’s obligations with due care
- Misappropriation, embezzlement or theft of corporate assets
- Tortious interference with corporate business opportunities
- Self-dealing and conflict-of-interests transactions
Breach of Shareholder Agreements
Shareholder agreements impose numerous obligations in addition to shareholders’ fiduciary duties of loyalty and care. When shareholders breach their contractual obligations, they can face injunctive enforcement as well as liability for damages. Some common examples of shareholder breaches include:
- Acting beyond the scope of a shareholder’s authority
- Using corporate assets for impermissible purposes
- Failing to follow procedures for corporate decision-making or dispute resolution
- Failing to make required capital contributions
- Failure to fulfill a shareholder’s responsibilities in an executive capacity
Shareholder agreements frequently include mandatory mediation or arbitration clauses (or both), and, as a result, many breach cases are subject to one or both forms of alternative dispute resolution (ADR). However, there are exceptions, and when a shareholder’s breach causes, or threatens to cause, immediate and irreparable harm to the company, the company’s other shareholders can pursue appropriate equitable remedies (i.e., an emergency injunction or temporary restraining order) in court.
Shareholder Deadlocks
Deadlocks are among the most common reasons for shareholder disputes. When shareholders cannot reach the level of consensus needed to make a corporate-level decision, they may have no practical choice but to pursue dispute resolution mechanisms.
In these types of scenarios, the first step is typically to review the shareholder agreement to identify what mandatory procedures (if any) the shareholders must follow. But, it is important for the shareholders to consider their respective priorities at this stage as well. Is the ultimate goal to get past the deadlock and move on with growing the company? Or is it time to move on from the company and pursue other opportunities? The answers to these questions, among others, will greatly influence how individual shareholders choose to approach deadlock cases.
Shareholder Derivative Litigation
In shareholder derivative litigation, shareholders file a lawsuit on behalf of the company as a result of the board’s failure to act. Shareholders can pursue derivative actions in a broad range of scenarios, including scenarios involving other shareholders’ fraud, negligence, or other misconduct. Shareholder derivative litigation is a unique area of corporate law, and it is imperative that shareholders who are considering derivative claims consult with a highly experienced Miami shareholder dispute attorney.
Shareholder Oppression (Minority-Majority Shareholder Disputes)
While minority shareholders may hold relatively little power within their company, they still have powerful legal rights. In particular, minority shareholders have the right to hold their majority counterparts to their fiduciary duties. If majority shareholders use their control to unfairly disadvantage minority shareholders, those in the minority can pursue legal or equitable remedies—although the minority shareholders will need to carefully review their shareholder agreement to determine the steps they need to take and the options they have available.
Our Miami Shareholder Dispute Attorneys Target Favorable Results with Cost-Effective Resolution Strategies
Whether we are representing individual minority shareholders, majority shareholders, or the company itself, we take the same strategic approach to protecting our client’s interests in shareholder litigation. We target favorable results with cost-effective strategies considering the realities at hand. In some cases, attempting to work out an amicable resolution will be the best approach. In others, mediation or arbitration may be necessary. In others still, shareholder litigation may be the only practical way forward, and it may not be efficient to pursue interim options. Whatever the case may be, we work closely with our clients to help them make informed decisions focused on maximizing value long-term.
Speak with a Miami Shareholder Dispute Attorney at Edelboim Lieberman
For more information about how we help companies and shareholders favorably resolve shareholder disputes, contact us for a complimentary consultation. Call 305-768-9909 or request an appointment online to speak with an experienced Miami shareholder dispute attorney in confidence.
