Common Shareholder Disputes

In the business world, it is not uncommon to hear about companies going to court over a number of issues. It is not, however, only an issue between two companies; shareholder disputes are also a factor in business. Since the legal side of business can get quite complicated at times, it is wise to contact a business attorney if a shareholder dispute is apparent. Here are some of the more common reasons for disputes:

–        dissenting shareholder appraisal rights

–        minority shareholder freeze-out

–        shareholder oppression

–        request for a corporate dissolution without oppression

–        partnership or LLC dissolution

This is only a small portion of the most common reasons for disputes, but you can see from the list that shareholder disputes are not always a simple matter. Since shareholders are divided into minority and majority shareholders, there is always a chance of an arising dispute.

A majority shareholder may take advantage of his share, for example, by extracting value out of the company by payments of excessive salary. This is, of course, not how a business should be run, since it can lead to a number of problems.

Breach of contract or buy/sell agreement violations can also be a common cause for a shareholder dispute. Legal issues regarding contracts are not something you should face alone. When an issue like a breach of contract needs to be handled, be sure to contact an experienced business attorney as soon as possible.

With any business law issue, you should not try to figure out the legal intricacies yourself. getting the help of a knowledgeable business attorney will make things significantly easier for you. For help with business law in Illinois, contact our experienced Chicago business law attorneys today.