An Atlanta dispute resolution attorney at KPPB Law recently published a blog post explaining the rights of minority shareholders. Understanding these rights can help minority shareholders protect themselves in legal disputes and maintain control of their shares.
There are several ways in which minority shareholders rights are commonly violated. They are often barred from viewing company records and accessing other pertinent information in an effort to minimize their input in the company's business. Many minority shareholders report that they are paid fewer dividends or none at all, despite being entitled to specific amounts as noted in the shareholders' agreement. Majority shareholders may take actions that overtly benefit them at the expense of minority shareholders, such as diverting business to other companies in which they have a stake, in another violation of rights. Minority shareholders may also be forced to accept a buyout of their shares at a diluted price, effectively ending their involvement in the company. Failing to recognize your rights and take action to ensure those rights are respected as a minority shareholder can therefore be disastrous.
Employing a dispute resolution attorney can be the difference between maintaining your stake in a company and being squeezed out entirely. An attorney can review shareholders' agreements, make recommendations about their content, and arbitrate disputes if minority shareholders feel their rights are being violated. An attorney can also help identify potential problem areas for minority shareholders before an issue arises by evaluating contracts and other documents before they are signed. Minority shareholders who do not use the services of a dispute resolution attorney risk unsuccessfully representing themselves in disputes, leaving them vulnerable to further rights violations and financial losses.
Roy Banerjee is an Atlanta dispute resolution attorney with 18 years of experience in helping minority shareholders maintain their rights. Banerjee specializes in disputes involving small to medium businesses, independent business owners, and national or multi-national banking and technology organizations. He is also knowledgeable in cases involving real estate, construction, and business operations.
For more information, call Banerjee at 678-443-2225. Banerjee's office is located at 990 Hammond Drive NE, Suite 800, Atlanta, GA 30328.