Shareholder Disputes

At Gray Plant Mooty, we represent majority and minority shareholders, and corporations involved in shareholder, corporate governance, and valuation disputes. A dispute within your business can be just as devastating as a dispute with an outside company or individual. These events can threaten the very existence of closely held businesses, endangering the equity that shareholders have built over many years of hard work.

While there may be shared objectives when you are beginning a business, changes in the shareholders’ long and short term goals can occur over time, causing disagreements if the parties are not able to negotiate a satisfactory resolution.

We provide counsel in a wide-variety of disputes, including:

  • Breaches of fiduciary duty
  • Breaches of shareholder/partnership agreements
  • Disagreements over the sale of assets, mergers, and similar corporate events
  • Embezzlement
  • Corporate governance
  • Dissolutions
  • Dividends, distributions, and shareholder loans 
  • Excessive executive compensation claims
  • Misappropriation of confidential information
  • Self-dealing
  • Valuation disputes

We recognize—and are sensitive to—the importance of resolving these situations with grace and the need to protect relationships with a minimum amount of damage. Because of our experience, we’ve been called on to guide businesses in conducting comprehensive investigations of their concerns. We will help you explore your options, and we will be ready to protect your rights if an agreement cannot be reached. Moreover, when the situation requires, we will move aggressively on your behalf in court to obtain necessary protection for you and your business.

We are innovative by nature, providing several options when dealing with complex matters. As a result, we often call upon the expertise of our colleagues within several practice areas, including tax, intellectual property, real estate, and entrepreneurial services.

Experience

Representative Matters

  • Represented two of three owners in agricultural-related construction company; successfully opposed motion for temporary restraining order and receiver
     
  • Represented owners of Web-based business in obtaining temporary restraining order against former employee and shareholder who was competing; favorably resolved matter related to attempt to unwind client’s purchase of former shareholder’s stock
     
  • Represented widow seeking full compensation for redemption of her husband’s stock in closely held corporation; amount obtained for client was 70% more than initially offered
     
  • Represented part owner of distribution company in four-day arbitration involving claims by other owners of conversion and other wrongful conduct; arbitration award in favor of client was four times last settlement offer
     
  • Represented majority owner of construction company against claims by a minority owner of conflict-of-interest transactions and breach of fiduciary duties; successfully opposed motion for temporary restraining order and receivership