Shareholder Dispute

New Jersey Shareholder Dispute Attorneys

Shareholders should benefit from their investment and role in a company, and shareholders should work together with other company leaders to maintain a mutually beneficial relationship. While many people do not face concerns as shareholders, legal disputes can arise between shareholders and various other parties at times within New Jersey and New York companies.

Resolving shareholder disputes as soon as possible – and as efficiently as possible – is essential to the success of a company. If parties are unable to negotiate a resolution out of court, one or more shareholders might take the issues to court by filing a lawsuit. When such derivative actions arise, both the shareholders bringing the action as well as those who need to defend against the lawsuit should have proper legal representation.

The New Jersey shareholder dispute lawyers at Varcadipane & Pinnisi, PC, help shareholders and other professionals in New Jersey and New York with this type of legal conflict. Contact us today.

Common Disputes Involving New Jersey Shareholders

Our legal team represents different parties in a wide range of shareholder disputes. These disputes can involve complex legal issues, including but not limited to:

  • Alleged breach of shareholder agreements
  • Oppression of minority shareholders by majority shareholder
  • Other conflicts arising between minority and majority shareholders
  • Differing opinions about the expenditures and management of the company
  • Disparities regarding dividend distribution
  • Disparities regarding capital contributions
  • Allegations that a party breached its fiduciary duty to shareholders

Disputes might involve disagreements over the future direction of the company in general or specific issues involving specific actions – or lack thereof – between the parties. In either situation, shareholders and other company leaders should fight to maintain their investments. This is best accomplished with the assistance of a New Jersey shareholder dispute attorney. If you fail to take the proper action with the right legal assistance, it can result in costly and often preventable losses.

Resolving Shareholder Disputes

As soon as it becomes clear that a conflict is arising, parties can take steps to try to resolve the matter as early as possible. An experienced attorney can help parties negotiate in informal settings to start the dispute resolution process. If they can reach an agreement on how to resolve the dispute, the matter can be dropped without the need for any legal proceedings. This is an ideal result if all parties can agree to a mutually beneficial solution.

Often, disputes will be developing and increasing for some time, which can make it difficult to resolve the matter strictly through informal negotiations. To ensure that you receive a favorable outcome, you might need to participate in formal dispute resolution. Some shareholder agreements require certain forms of alternative dispute resolution (ADR) before any party can file a derivative action in court.

Some ways our legal team can assist in resolving shareholder disputes include:

  • Mediation – This form of ADR takes place in an informal setting, often a conference room or attorney’s office. A mediator facilitates compromise between the parties, and they can sign a mediation agreement if they reach mutually agreeable terms and conditions.
  • Arbitration – Arbitration is common, as many shareholder agreements mandate this type of dispute resolution over litigation. An arbitration proceeding resembles a trial since it is overseen by an arbitrator or arbitration panel, which resembles a judge’s role. However, arbitration does not have the same standards or evidentiary rules that protect the interests of parties. Further, the arbitrator’s decision for how to resolve the matter is binding, so an unfavorable outcome can cause financial losses to a shareholder.
  • Litigation – Sometimes, litigation is necessary to resolve shareholder disputes. Such court cases can address specific actions or relationships, as well as broader issues involving how the company is managed in general. All litigation must follow strict rules and this can be a time-consuming process.

Shareholders who bring derivative actions can seek many different remedies depending on the situation in question. Remedies that our lawyers regularly seek might include:

  • Damages
  • Court orders for buyouts
  • Dissolution of the company

Some remedies can greatly impact the future of a business, and all parties need qualified legal assistance in such high-stakes situations.

Discuss Your Situation with a New Jersey Shareholder Dispute Lawyer

Shareholder disputes can have a lot on the line for both shareholders and company leadership. As soon as you know that a conflict exists, you should reach out to the New Jersey shareholder dispute attorneys at Varcadipane & Pinnisi, PC. Contact us today to learn more about our services and so we can evaluate your best legal options.

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