3 Different Approaches to Resolving Shareholder Disputes

California shareholder disputes attorneys provide assistance if co-owners of a company become involved in a disagreement. Shareholder disputes can arise in many different situations, but are especially common in closely-held companies and/or in companies where at least some shareholders are actively involved with the day-to-day management of the organization.

Shareholder disputes can be detrimental to the ongoing success of a company and can cause co-owners to face the risk of losing their investment if the shareholders are not able to come to a consensus so normal operations can continue.

Brown & Charbonneau, LLP can provide assistance in minimizing and mitigating the corrosive impact of a shareholder dispute. When you need an expert California shareholder disputes attorney with experience in helping to preserve relationships and protect companies, we are here for you. Give us a call to find out more about the ways in which our legal team can assist you.

Three Possible Ways to Resolve Shareholder Disputes

There are three primary ways that shareholders of a company could resolve a dispute that has arisen. The options include:

• Mediation: Mediation can be the best possible approach to resolving shareholder disputes in situations where it is necessary for those involved in the disagreement to continue working together. Mediation allows those who are involved in the conflict to negotiate a resolution themselves under the guidance of a skilled mediator who helps to facilitate communication. The mediator will not make decisions or force an agreement, but helps the disputing shareholders to effectively come to a compromise. An experienced attorney can assist in knowing your rights when you mediate a dispute so you can work towards an outcome that is fair and reasonable.
• Arbitration: Arbitration could be the only option if mediation does not work to find a resolution and if there is an arbitration clause. An arbitration clause is included in many different kinds of contracts and agreements and mandates that a problem be resolved in front of an arbitrator. Arbitration can keep a dispute private, and can allow you to select a person to make decisions who is familiar with your industry. Arbitrators do typically making binding decisions that the disputing shareholders will have to live by, unless they can successfully appeal the decision of the arbitrator.
• Litigation: If you must continue to work with or remain otherwise involved with the shareholders whom you are disputing with, litigation can be the least desirable option. Litigation involves going to court so evidence may be presented to the court and the court can make decisions. Litigation has winners and loses and is adversarial, rather than focusing on comprise like mediation. Litigation should typically be the last resort, and/or should be reserved for cases where there is a serious problem such as a breach of fiduciary duty by a shareholder who is involved with company affairs.

Brown & Charbonneau, LLP has experience with all of these different kinds of dispute resolutions that are used to resolve shareholder disputes. We will work hard to help you select the best approach that is likely to help you achieve your long-term business goals.

How Should Your Organization Resolve a Shareholder Dispute?

The right approach to resolving a shareholder dispute is going to depend upon many factors including the nature of the disagreement and the extent of involvement that the shareholders will continue to have with the business organization.

If shareholders who must work closely together get involved in a dispute, for example, resolving this problem through means other than mediation or negotiation could result in resentment that makes it difficult to continue working effectively together. Companies can break down if co-owners who operate the business are not on the same page, and the adversarial nature of litigation or even arbitration can poison business relationships.

Brown & Charbonneau, LLP can offer assistance in selecting the best and most appropriate method of dispute resolution and can work with you to find solutions to your shareholder dispute so you and your company’s co-owners can continue to work effectively together to help ensure the long-term success of your company.

Getting Help from Expert California Shareholder Disputes Attorney

Brown & Charbonneau, LLP represents shareholders in companies of all different sizes who believe their rights are not being respected. If you are involved in a shareholder dispute, our legal team can assist you in resolving the problem through mediation, litigation, or arbitration.

To discover more about how we can help you, give us a call at 714-505-3000 or contact us online. Our legal team can provide personalized advice to help protect your company, so call as soon as possible if a problem arises.