Executive or Shareholder Dispute in California?Speak With Our San Diego Employment Lawyers Now
Corporate directors and officers owe a duty to the corporation’s shareholders. In turn, these shareholders can bring lawsuits against corporate executives who fail to uphold their corporate duties. Common executive and shareholder disputes include:
- Personal disputes (e.g., Breach of Contract, Breach of Fiduciary Duty)
- Trade secret and/or non-compete agreements
- Management misconduct.
Disputes may also arise where executives believe they have been denied just compensation. Because executive and shareholder disputes can be costly and complicated, it is important that you consult with a competent San Diego labor and employment attorney before engaging in such litigation.
Breach of Fiduciary Duty
Under California law, officers and directors of a corporation owe certain fiduciary duties to the corporation. Such duties include the following:
- Duty of care
- Duty of loyalty
- Compliance with the corporate opportunity doctrine (and avoiding waste of corporate assets)
- Avoiding potential conflicts of interest.
Claims Against Corporate Executives and Directors
If a director or officer fails to meet any of the fiduciary duties that they owe the corporation, that company’s shareholders have a right to intervene. Executive and shareholder disputes may arise from a variety of situations, including the following alleged wrongdoing:
- Breach of fiduciary duty
- Breach of the covenant of good faith and fair dealing
- Concealment and/or fraud
- Breach of duty to disclose information.
If a shareholder suspects wrongdoing by management, he or she may bring an action for accounting.
Alternative Dispute Resolution
The parties may also choose to deal with the matter by using an alternative means of dispute resolution. This often saves money and results in a more timely resolution. Common forms of alternative dispute resolution include mediation and arbitration.
Assistance with Executive and Shareholder Disputes
If you are facing the possibility of a dispute between your corporation’s executives, directors and/or shareholders, you should consult with a San Diego employment attorney who is familiar with the fiduciary duties of corporate officers and directors. At the law firm of Pope, Berger & Williams, LLP, our attorneys are experienced in assisting clients who suspect improper executive activity. If you have any questions about a dispute that you or your corporation may be having, contact a San Diego employment attorney at our firm today. |
