Minneapolis Business Lawyer

Shareholder Agreements and Disputes

At Skjold ▪ Barthel we pride ourselves on serving clients on both sides of shareholder disputes. Shareholder disputes are among the main corporate control problems in corporations big and small. Since the stock that shareholders purchase serves as the primary capital for the business, shareholder disputes can be particularly disruptive to the seamless running of a business. Unfortunately, less than twenty percent of businesses make it out of their first generation due to shareholder disputes

The most common shareholder dispute occurs when conflicting parties both stake ownership of the same stock in a company. While the stock certificate can determine the initial ownership of the shares, it can also prove contestable and further complicate matters. The stock certificate is subject to scrutiny and controversy, and, from this questioning, a shareholder dispute arises.

Another concern is when there is a breach of fiduciary duty. In these complex cases, the court not only determines the ownership of the stocks, but also if a shareholder’s rights have been compromised or violated due to the case of fiduciary duty by another shareholder.

In some cases, the shareholder dispute stems from conflicting perspectives on the company’s objectives or business practices. The shareholders can refuse to approve executive pay or allege that mismanagement is affecting the profitability of the business.

A great degree of care, delicacy and experience in shareholder litigation is required to preserve the common interest in a company in the case of shareholder disputes. The expert Minneapolis business lawyers at Skjold ▪ Barthel have experience in assisting either side in a shareholder dispute. If your business is involved in any form of a shareholder dispute, contact the Minneapolis Shareholder Disputes Attorney of Skjold ▪ Barthel today at 612-746-2560 for a free consultation.