Legal Blogs

Shareholder Disputes Come in Many Forms

shareholder disputes attorneysAs Irvine shareholder disputes attorneys, we advise clients that need legal representation. There are many different types of shareholder disputes, and we have the ability to address any and all situations that may arise. We work very closely with our clients to gather all the facts, and we go the extra mile to advocate their interests. Plus, you can rest assured that we are not afraid to go to court when it is necessary.

Sales, Mergers & Acquisitions

Business sales, mergers, and acquisitions can be very complicated, and all shareholders may not be on the same page. There can be differences with regard to valuation, accounting, and other aspects of the transaction. We can be called in to examine the details and make the appropriate recommendations.

General Counsel and Consulting Services

We also provide general counsel and consulting services for businesses of all shapes and sizes. Running a business is demanding, and legal issues are invariably going to arise. When you partner with us, we will be ready to provide legal insight whenever you need it. You will have a business attorney at your side, but you will not have to pay a high salary to a partner level business lawyer.

Buy-Sell Agreements

There is a business succession strategy for business partners that is called a buy-sell agreement. To explain the value through a very simple example, let’s say that you have one business partner. If your partner was to pass away, you would want to gain control of the entire business, and your partner feels the same way. How do you make this happen in a fair, smooth, and efficient manner?

When the situation is very straightforward like this example, you could use a buy-sell agreement that is called the cross purchase plan. The way that it works is that you and your partner get together to place a value on each share in the business. If you can find common ground, you buy insurance policies on one another equal to the agreed-upon value of a business share.

For the purposes of our example, we will assume that your partner passes away before you do, and you are capable of operating the business alone. You would receive the insurance policy proceeds, and they would be used to purchase the share that was owned by your deceased partner from his or her family. They would have liquidity that they need to spread around multiple inheritors, and you would be able to continue to run the business.

There is another type of buy-sell approach called the redemption agreement that is sometimes the right choice. It is virtually identical to the cross purchase plan that we explained above with regard to the utilization of insurance policy proceeds to purchase the shares of deceased stakeholders. However, with this type of agreement, the company itself buys the insurance policies.

We should point out the fact that a buy-sell agreement does not have to be used for estate planning purposes only, and it does not necessarily have to involve the purchase life insurance. It can be the centerpiece of a succession plan when one partner wants to retire or step aside for another reason. The agreement would be a legally binding contract that could be enforced by an exiting partner that wants to sell their share to the remaining partner or partners.

Our Irvine shareholder disputes attorneys can definitely help you establish a buy-sell agreement. This being stated, if a legal dispute arises when the agreement is being exercised, we can be engaged to represent you, and we will go the extra mile to facilitate a favorable outcome.

Other Shareholder Matters

The attorneys at Brown & Charbonneau can handle many other business law and shareholder situations. This is a partial list:

  • Shareholder Derivative Actions
  • Licensing Issues
  • Corporate Restructuring
  • Inappropriate Use of Company Funds
  • Fraud Cases
  • Fiduciary Duty Breaches

Our Irvine Shareholder Disputes Attorneys Can Help!

We would be more than glad to provide assistance if you would like to discuss any type of Irvine shareholder dispute with one of our attorneys. At the consultation, we will gather the necessary information, and we will map out a legal strategy if you decide to move forward. If you are ready to get started, you can send us a message to request an appointment, and we can be reached by phone at 714-406-4554.