Shareholder Disputes

June 22nd, 2011 | Author: | Corporate & Business

When companies make an Initial Public Offering (IPO) they are choosing to go public and allow anyone to purchase stocks in the company. By purchasing stocks, shareholders own a percentage of the company and therefore experience the same monetary gains or losses the company experiences. The distribution of stock ownership varies. In some cases, there are a few shareholders who own the majority of the stock and in others there may be tens of thousands of people who own stock.

There may be certain situations where there is a dispute between the shareholders that can cause problems. In some cases, the shareholder agreements do not provide proper details regarding how the shares should be split up between partners and other individuals who have a stake in the business. You need a professional business attorney to give you the best advice.

Shareholder Disputes

When shareholders dispute the proper division of ownership or any other possible problem, they are putting the life of the company in jeopardy. There may be a dispute over shares of stock if a shareholder does any of the following:

  • Decides to leave the company
  • Gets disabled or files for bankruptcy
  • Passes away

Another common dispute topic is when people disagree on how much a stock should be worth. If the holders use a formula to decide on the stock’s value, they may over or underestimate.

You shouldn’t have to suffer any longer because of a shareholder dispute. To speak with a qualified legal representative about your legal options, contact a business attorney.



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