{"id":27055,"date":"2020-07-15T12:43:05","date_gmt":"2020-07-15T17:43:05","guid":{"rendered":"https:\/\/federal-lawyer.com\/?page_id=27055"},"modified":"2025-01-08T01:20:01","modified_gmt":"2025-01-08T07:20:01","slug":"shareholder-disputes","status":"publish","type":"page","link":"https:\/\/federal-lawyer.com\/business-litigation\/shareholder-disputes\/","title":{"rendered":"Shareholder Disputes"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Shareholder disputes can be costly, but they can also be resolved efficiently in many circumstances. We represent corporations, minority shareholders, and majority shareholders in negotiations, alternative dispute resolution (ADR), and litigation nationwide.<\/h2>\n\n\n\n<div class=\"content-image-sec\" style=\"float:left;text-align:center;padding-right:1em;\"><a href=\"https:\/\/federal-lawyer.com\/business-litigation\/dr-nick-oberheiden\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/03\/dr-nick-oberheiden-attorney-at-law.jpg\" alt=\"Dr. Nick Oberheiden\" class=\"wp-image-43903 contact-img\" width=\"218\" height=\"328\" srcset=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/03\/dr-nick-oberheiden-attorney-at-law.jpg 400w, https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/03\/dr-nick-oberheiden-attorney-at-law-200x300.jpg 200w, https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/03\/dr-nick-oberheiden-attorney-at-law-280x420.jpg 280w\" sizes=\"(max-width: 218px) 100vw, 218px\" \/><\/a><div style=\"font-size:.7em;\"><figcaption><span><a href=\"https:\/\/federal-lawyer.com\/business-litigation\/dr-nick-oberheiden\/\"><strong>Attorney Nick Oberheiden<\/strong><\/a><\/span>Shareholder Disputes Team Lead<\/figcaption><a href=\"https:\/\/federal-lawyer.com\/business-litigation\/contact-nick\/\" class=\"contact-link-inner\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2023\/07\/circled-envelope-1.png\" alt=\"envelope icon\" class=\"wp-image-59478\"\/>Contact Nick<\/a><\/div><\/div>\n\n\n\n<p>Corporate shareholders are entitled to certain legal rights, and they are also entitled to certain expectations. When one shareholder violates another shareholder&#8217;s rights, or when the corporation&#8217;s board or executive leadership team fails to meet shareholders&#8217; reasonable expectations, this can \u2013 and often will \u2013 lead to contentious disputes and the potential for litigation.<\/p>\n\n\n\n<p>Our firm represents public and private corporations and corporate shareholders in disputes and litigation nationwide. We provide representation for all types of shareholder disputes, from disagreements between co-owners of privately-held businesses to shareholder derivative claims filed against large, publicly-traded companies. Our attorneys are <a href=\"\/team\/\">experienced litigators<\/a> who have tried complex cases in federal jurisdictions across the country, and we also have an extensive track record of achieving favorable results for our clients without going to court.<\/p>\n\n\n\n<div style=\"clear:both;\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">3 Common Types of Shareholder Disputes<\/h2>\n\n\n\n<p>While shareholder disputes can involve innumerable scenarios and an almost endless list of legal issues, most of these disputes fall into one of three categories. These are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Disputes among shareholders in private-held corporations,<\/li>\n\n\n\n<li>Minority-majority shareholders disputes, and<\/li>\n\n\n\n<li>Shareholder derivative litigation involving public and private companies.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">1. Disputes Among Shareholders in Privately-Held Corporations<\/h3>\n\n\n\n<p>Disputes between shareholders will often arise within closely-held businesses. When a company has a limited number of shareholders, over time, the likelihood of a contentious dispute is relatively high. These disputes can involve a broad range of issues; and, while the shareholder agreement will provide guidance in some cases, in others it will be necessary to look elsewhere to find a means of resolution. We represent owners of private corporations in all types of shareholder disputes, including those involving:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Breach of fiduciary duty<\/li>\n\n\n\n<li>Breach of the shareholder agreement<\/li>\n\n\n\n<li>Conflict-of-interest transactions<\/li>\n\n\n\n<li>Usurping corporate business opportunities<\/li>\n\n\n\n<li>Misappropriation of corporate funds, IP, or other assets<\/li>\n\n\n\n<li>Management and control disputes<\/li>\n\n\n\n<li>Failure to meet corporate responsibilities<\/li>\n\n\n\n<li>Harming the corporation&#8217;s image or reputation<\/li>\n\n\n\n<li>Failure to make capital contributions<\/li>\n\n\n\n<li>Disagreements regarding dividends and distributions<\/li>\n<\/ul>\n\n\n\n<p>If you have run into an issue with one of your company&#8217;s other shareholders, acting promptly is likely to provide for the most-efficient and least-disruptive resolution. If your co-owner has breached a fiduciary duty or misappropriated corporate assets, taking swift action could be essential to mitigating the damage to your company. Our attorneys will work with you to assess your situation and explore your options, and we will strategically pursue a result that protects you and your company to the greatest extent possible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Minority-Majority Shareholder Disputes<\/h3>\n\n\n\n<p>Disputes between minority and majority shareholders are relatively common as well; and, here too, there are a number of different issues that may need to be resolved. By their nature, these <a href=\"https:\/\/federal-lawyer.com\/business-litigation\/partnership-disputes\/\">disputes<\/a> typically involve claims filed by minority shareholders against majority shareholders, and these claims are typically based on allegations of some form of conflict of interest, mismanagement of the company, or minority shareholder oppression.<\/p>\n\n\n\n<p>As counsel for minority shareholders, we work to clearly establish our clients&#8217; rights under the terms of their shareholder agreement and applicable law, and we fight to ensure that their voices are heard. We pursue all available remedies on our clients&#8217; behalf, and we take the necessary steps to mitigate the risk of similar issues arising in the future.<\/p>\n\n\n\n<p>As counsel for majority shareholders, we forcefully assert our clients&#8217; contractual and statutory rights, and we help them stand firm against unmerited attempts to challenge their discretion and authority. We litigate when necessary, but we are frequently able to achieve favorable outcomes through out-of-court settlement negotiations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Shareholder Derivative Litigation Involving Public and Private Companies<\/h3>\n\n\n\n<p>Shareholder derivative lawsuits involve claims filed by one or more corporate shareholders on behalf of the corporation. These claims typically target corporate executives and board members, although there are various other possible defendants in shareholder derivative litigation as well. We represent shareholders in pursuing derivative claims, and we also provide defense representation for executives, directors, and others accused of wrongdoing in shareholder derivative litigation.<\/p>\n\n\n\n<p>As a derivative lawsuit filed on behalf of the corporation, a successful case results in remedies being awarded to the corporation\u2014not the shareholders who pursue the derivative claim. While this can result in indirect benefits to shareholders (in the form of increased value of their shares), in many cases shareholders will find it necessary to pursue individual claims as well. If you are a shareholder in a public or private company and you have concerns about an issue that has caused the company financial harm, our attorneys can help you make an informed decision about what type(s) of claim(s) to pursue, and we can seek all appropriate remedies on your and\/or the corporation&#8217;s behalf.<\/p>\n\n\n\n<section class=\"widget team_in_body main-team-block\">\n    <h2 class=\"widget-title\">Put our highly experienced team on your side<\/h2>\n    <div class=\"textwidget\">\n\n        <div class=\"row\">\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/dr-nick-oberheiden\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2015\/11\/150716_0172.1-Nick-Oberheiden-200x300.jpg\" alt=\"Dr. Nick Oberheiden\" \/><\/a>\n\t\t\t\t<h5>Dr. Nick Oberheiden<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Founder<\/p>\n\t\t\t\t<p class=\"designation\">Attorney-at-Law<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/lynette-byrd\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/06\/Byrd_Lynette_400x600.jpg\" alt=\"Lynette S. Byrd\" \/><\/a>\n\t\t\t\t<h5>Lynette S. Byrd<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former DOJ Trial Attorney <\/p>\n\t\t\t\t<p class=\"designation\">Partner<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/brian-j-kuester\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/06\/Kuester_Brian_400x600.jpg\" alt=\"Brian J. Kuester\" \/><\/a>\n\t\t\t\t<h5>Brian J. Kuester<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former U.S. Attorney<\/p>\n\t\t\t\t<p class=\"designation\"> <\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/hon-kevin-mccarthy\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2025\/01\/KevinMcCarthy400x600-280x420.png\" alt=\"Kevin McCarthy\" \/><\/a>\n\t\t\t\t<h5>Hon. Kevin McCarthy<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">55th Speaker, U.S. House of Representatives (ret.)<\/p>\n\t\t\t\t<p class=\"designation\">Government Consultant<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/hon-mike-pompeo\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/12\/mike-pompeo-200X300.jpg\" alt=\"Mike Pompeo\" \/><\/a>\n\t\t\t\t<h5>Mike Pompeo<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Of Counsel<\/p>\n\t\t\t\t<p class=\"designation\">Former U.S. Secretary of State<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/john-w-sellers\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/06\/Sellers_John_200x300.jpg\" alt=\"John W. Sellers\" \/><\/a>\n\t\t\t\t<h5>John W. Sellers<\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Senior DOJ Trial Attorney<\/p>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/linda-julin-mcnamara\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/06\/McNamara_Linda_400x600.jpg\" alt=\"Linda Julin McNamara\" \/><\/a>\n\t\t\t\t<h5>Linda Julin McNamara <br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Federal Appeals Attorney<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/nicholas-b-johnson\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2026\/01\/NickJohnson-no-background-112x168-1.png\" alt=\"Nicholas B. Johnson\" \/><\/a>\n\t\t\t\t<h5>Nicholas B. Johnson<br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Prosecutor<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/roger-bach\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2024\/06\/Bach_Roger_200x300.jpg\" alt=\"Roger Bach\" \/><\/a>\n\t\t\t\t<h5>Roger Bach <br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Special Agent (DOJ)<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/chris-j-quick\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/09\/200x300.png\" alt=\"Chris Quick\" \/><\/a>\n\t\t\t\t<h5>Chris J. Quick<br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Special Agent (FBI &amp; IRS-CI)<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/michael-s-koslow\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/12\/Koslow-200x300-1-e1576008304602.png\" alt=\"Michael S. Koslow\" \/><\/a>\n\t\t\t\t<h5>Michael S. Koslow<br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Supervisory Special Agent (DOD-OIG)<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col\">\n\t\t\t\t<a href=\"https:\/\/federal-lawyer.com\/ray-yuen\/\"><img decoding=\"async\" src=\"https:\/\/federal-lawyer.com\/wp-content\/uploads\/2019\/09\/Attorney-A-_200x300-e1573513166758.png\" alt=\"Ray Yuen\" \/><\/a>\n\t\t\t\t<h5>Ray Yuen<br \/><\/h5>\n\t\t\t\t<p class=\"designation designation2\" style=\"color:#ef780a;\">Former Supervisory Special Agent (FBI)<\/p>\n\t\t\t<\/div>\n\t\t<\/div>\n\n    <\/div>\n<\/section>\n<style>\n.team_in_body h5 { margin-bottom:0; }\n.team_in_body p { margin-bottom:0; }\n.single_blog_page .widget img { margin:0!important; margin-bottom:5px!important; }\n<\/style>\n\n\n\n<h2 class=\"wp-block-heading\">10 Potential Ways to Resolve Corporate Shareholder Disputes<\/h2>\n\n\n\n<p>When dealing with a shareholder dispute, the most-desirable outcome will depend heavily on the circumstances involved. This includes everything from the nature of the dispute and the parties involved to the specific factual and legal issues at hand. Generally speaking, it will be desirable to avoid litigation in most cases \u2013 and there are many alternatives available \u2013 however, it is important not to dismiss the possibility of litigation out of hand.<\/p>\n\n\n\n<p>With this in mind, some examples of ways in which corporate shareholder disputes can be resolved include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Review and Apply the Shareholder Agreement<\/strong> \u2013 When facing any type of shareholder dispute, one of the first steps should be to review the corporation&#8217;s governing documents. In many cases, the terms of the shareholder agreement will dictate the outcome of a shareholder dispute, or at least provide substantial guidance for identifying a mutually-agreeable path forward.<\/li>\n\n\n\n<li><strong>Settlement Negotiations<\/strong> \u2013 If all parties recognize the validity of the dispute and have an interest in avoiding litigation, then structured settlement negotiations will likely offer a viable solution for achieving a mutually-agreeable outcome.<\/li>\n\n\n\n<li><strong>Adoption of a Formal Resolution<\/strong> \u2013 Based on the outcome of settlement negotiations between the parties, it may be possible for the corporation to adopt a formal resolution that addresses the issue(s) at hand and provides a solid foundation for the corporation&#8217;s ongoing operation.<\/li>\n\n\n\n<li><strong>Appointment of Directors or Other Advisors<\/strong> \u2013 When shareholders are unable to come to terms but want to continue operating their business, one option that works in some cases is to appoint a director or other advisor whose role is to provide unbiased recommendations that reflect the best interests of the corporation.<\/li>\n\n\n\n<li><strong>Removal of a Director or Other Advisor<\/strong> \u2013 In shareholder derivative litigation and certain other types of shareholder disputes, the removal of a director or other advisor may serve as a means to achieve a mutually-acceptable result for all parties involved.<\/li>\n\n\n\n<li><strong>Removal of Offending Shareholders<\/strong> \u2013 Likewise, the removal of offending shareholders can often provide a just result, and in many cases the shareholder agreement will outline the specific means to do so. While seeking to remove a shareholder can lead to litigation in some cases, it will often make sense as a negotiated outcome as well.<\/li>\n\n\n\n<li><strong>Exercise of Buyback or Buyout Rights<\/strong> \u2013 Exercising shareholders&#8217; buyback and buyout rights will also prove to be an effective means of resolving shareholder disputes in many cases. If it makes sense for you to exit the company or acquire your co-owner&#8217;s shares, we can help you approach this strategically and prepare all of the necessary documentation to execute the transaction.<\/li>\n\n\n\n<li><strong>Sale or Liquidation of the Company<\/strong> \u2013 Occasionally, selling or liquidating the company will prove to be the most practical solution to a shareholder dispute. If this is an option you want or need to consider, our attorneys can represent you with regard to your dispute and in all phases of the ensuing transaction.<\/li>\n\n\n\n<li><strong>Alternative Dispute Resolution (ADR)<\/strong> \u2013 Mediation and arbitration can be extremely effective tools for resolving shareholder disputes. Whether the use of alternative dispute resolution (ADR) is mandated by the terms of your shareholder agreement or you choose to pursue ADR voluntarily, mediation and arbitration can provide structured forums for resolving shareholders&#8217; disagreements without the need for trial litigation.<\/li>\n\n\n\n<li><strong>Litigation Through Trial<\/strong> \u2013 If necessary, a shareholder dispute can be litigated through trial. At Oberheiden P.C. we have had significant success in all types of <a href=\"\/business-litigation\/\">business litigation<\/a>, and our senior attorneys are seasoned litigators who are highly experienced in all aspects of federal pre-trial and trial practice.<\/li>\n<\/ul>\n\n\n\n<p>Ultimately, when dealing with a shareholder dispute, the key to achieving a positive outcome is to take a proactive and strategic approach that is driven by the specific circumstances involved. At <a href=\"\/our-firm\/\">Oberheiden P.C.<\/a>, we have the experience and insights you need to begin making informed decisions immediately, and we have the resources and capabilities required to achieve a favorable result through settlement negotiations, in ADR, or at trial.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Speak with a Senior Shareholder Litigation Attorney at Oberheiden P.C. in Confidence<\/h2>\n\n\n\n<p>If you need legal advice or representation for a shareholder dispute, we encourage you to contact us for more information. To speak with a senior business litigation attorney at Oberheiden P.C. in confidence, call us at 888-680-1745 or <a href=\"https:\/\/federal-lawyer.com\/business-litigation\/contact\/\" rel=\"nofollow\">tell us how we can reach you online<\/a> today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shareholder disputes can be costly, but they can also be resolved efficiently in many circumstances. We represent corporations, minority shareholders, and majority shareholders in negotiations, alternative dispute resolution (ADR), and litigation nationwide. Attorney Nick OberheidenShareholder Disputes Team LeadContact Nick Corporate shareholders are entitled to certain legal rights, and they are also entitled to certain expectations. &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/federal-lawyer.com\/business-litigation\/shareholder-disputes\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Shareholder Disputes&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":107,"menu_order":133,"comment_status":"closed","ping_status":"closed","template":"page-templates\/corporate-litigation-child.php","meta":{"_acf_changed":false,"_mo_disable_npp":"","footnotes":""},"class_list":["post-27055","page","type-page","status-publish","hentry","entry"],"acf":[],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Federal Lawyer","distributor_original_site_url":"https:\/\/federal-lawyer.com","push-errors":false,"_links":{"self":[{"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/pages\/27055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/comments?post=27055"}],"version-history":[{"count":6,"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/pages\/27055\/revisions"}],"predecessor-version":[{"id":89686,"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/pages\/27055\/revisions\/89686"}],"up":[{"embeddable":true,"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/pages\/107"}],"wp:attachment":[{"href":"https:\/\/federal-lawyer.com\/wp-json\/wp\/v2\/media?parent=27055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}