Shareholder disputes usually erupt when a shareholder believes that an officer or director of the corporation is abusing his or her duties.
Shareholders generally have the following basic legal rights:
- To vote;
- To receive a notice of a meeting of shareholders;
- To receive accurate information about the corporation’s finances; and
- To receive their portion of share capital, on dissolution.
- The exact list of rights will vary under the shareholder agreement, the articles of the company and the law.
While there are several legal remedies available in shareholder litigation, the oppression remedy is one of the more common and powerful statutory rights for shareholders. Under BC law, a shareholder is entitled to be treated fairly by a corporation and its directors. When reasonable expectations have not been met, or rights have not been respected fairly, shareholders can allege they have been ‘oppressed’ or ‘unfairly prejudiced’ and launch a shareholder dispute.
If you disagree with the decisions made by an executive of the corporation, or feel that there has been a breach of contract and your investment is being threatened, be sure to consult a knowledgeable business disputes lawyer. With extensive experience in corporate litigation matters, Hobbs Giroday lawyers have represented clients in all types of business disputes, including shareholder litigation, securities litigation, class actions, derivative actions, partnership disputes and director’s liability.
Whether you are a minority shareholder, a partner or a majority owner, our shareholder dispute lawyers can counsel you on your rights. We will also invest time in learning the intricacies of your business, devise solid strategies to achieve your litigation objectives and actively pursue your interests in court.
Shareholder disputes need to be handled decisively and efficiently in order to limit any potential damage to the business. Contact Hobbs Giroday for a no-obligation meeting to review your specific business dispute today.