Working with Shareholders

Many companies are owned by shareholders. These are the individuals who own stock in the company. Although they do not usually manage daily business, they can have influence on a company. A shareholder’s influence largely depends on what percentage of available stock he or she holds. At times, shareholders vote on decisions for the business, and in some instances, disagreements arise between company leaders and shareholders or among the shareholders themselves.

Common Shareholder Disputes

There are many reasons that there could be a business dispute involving shareholders. Some more common reasons include:

  • Company policy, plan, or strategy
  • Dissatisfaction with directors
  • Being excluded from a meeting
  • A major change occurring in the life of an important shareholder, such as filing for bankruptcy or leaving the company, leaving their shares in dispute
  • Breach or perception of a breach of a shareholder agreement
  • Disagreement about the value of stock

It is important that all involved parties work to solve shareholder disputes as quickly as possible to keep business operations running smoothly.

Resolving Disputes

Shareholder disputes that are not quickly resolved can become costly interruptions to business. Insight and decisiveness can help company leaders and shareholders alike to move through the dispute in a timely manner. If this seems unlikely, it might be necessary to contact a qualified business attorney to assist with the situation.

Contact Us

The Austin business lawyers of Slater, Kennon & Pugh Ltd.LLP are here to help your business work through shareholder disputes. Call us at 512-472-2431 to begin work on your case.



Our Location

4807 Spicewood Springs Rd.
Building 2, Suite 240
Austin, TX 78759

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Click here to read David Slater's article "Drafting Effective Employee Handbooks" in Executive Legal Advisor.