In a corporate relationship, the majority shareholders control the business. This mode of control raises the risk of oppression of minority shareholders. Such oppression could include a refusal of requests to go through company records, failure to pay dividends, insufficient dividend payment, abuse of company resources, stock inflation to dilute ownership, and selling assets below the appropriate value.
The Law Offices of Alex R. Hernandez Jr. represent minority shareholders or members who believe they have been deprived of their rights as shareholders. For instance, without access to a company’s financial records, it becomes very difficult to decide on one’s financial relationship with a company. Your investment may turn to zero because of lack of clear information.
Majority shareholders owe a duty of trust to fulfill the reasonable expectations of minority shareholders. Such expectations are both monetary and nonmonetary.
In litigation, it is important to have by your side lawyers who can first prove your minority shareholder status. This requires a fact-sensitive verification and is the first step to building a case. We have the expertise and skill to do so. We know how to proceed in cases where shareholder agreements are violated and shareholder rights compromised.
Prompt action on your part is required to ensure that your interests in a business are not harmed. Get in touch with us today; we will assess the situation and give you feedback on the steps that can be taken. Call today 1-888-HDZLAW-8