Dealing with any type of conflict can be one of the most stressful aspects of owning or managing a business. Disputes between shareholders can place a significant strain on business relations and such issues may leave the parties involved in search of ways to protect their interests. There are a variety of scenarios in which shareholder disputes may arise and individuals in Minnesota who face such concerns might not know how best to handle the situation.
Examples of shareholder disputes
According to experts, one of the most prevalent types of conflict among shareholders may stem from disagreements over the direction of the endeavor. This could include anything from disagreements over company management to the use of financial resources. Disputes can also arise should one party stand accused of violating the shareholder agreement, as the fallout could affect all parties involved.
Some shareholder disputes may also arise due to a lack of equality for compensation, especially when shareholders do not feel their compensation meets their level of contribution. Breach of fiduciary duty is another type of issue that could prompt intense shareholder disputes. Experts also indicate that conflict could stem from scenarios in which minority shareholders are unjustly placed in disadvantaged positions by majority shareholders.
This could only cover a few prevalent types of shareholder disputes. Individuals in Minnesota who encounter similar challenges and remain uncertain of how best to approach the matter might choose to retain the services of an attorney for guidance as soon as possible. An attorney can provide insight on all a client’s available legal options and help develop a strategy with which to safeguard his or her rights and interests.