Orlando Mediation & Arbitration Mediator Efficiently Resolves Shareholder Disputes
The true owners of a corporation are the shareholders – the individuals who have invested money into the company in exchange for a say in how the business ought to be governed. In most every case, shareholders only vote on issues affecting the direction and purpose of the company – a board of directors and lower-level managers handle the “day to day” operations of the company.
Reasons Why an Orlando Shareholder Dispute Might Erupt and Require ADR Services
Shareholders of a company generally do not lodge many objections to how a company is being run so long as (1) the company is generating a profit for the shareholders; (2) the company’s essential purpose or business remains unchanged; and (3) the company and its employees are not committing any unethical or illegal acts. Shareholders may choose to bring a legal proceeding against the board of directors of a company if they feel:
- The board of directors or a member thereof violates the fiduciary duties. The members of the board of directors have a fiduciary relationship with the corporation. In this context, this means that the board of directors must make decisions that are primarily in the best interest of the company. In other words, the business comes first. Not every “bad decision” will result in legal liability, but a decision that was clearly motivated by the director’s personal greed or ambition is one that should be examined by the shareholders;
- The board of directors has a conflict of interest. Closely related to the fiduciary duties related above is the requirement that the board of directors be free from any conflict of interest. A conflict of interest exists if a board member has competing obligations, goals, or objectives such that one person or entity would suffer at the expense of another. A board member who is also a board member of a competitor company, or one who wants to take advantage of a business deal him- or herself without telling the company are both examples of a conflict of interest.
- Motions to dissolve the company. Shareholders may be at odds with the board of directors or consultants about whether the company should wind up its affairs or switch to a new line of business. These are decisions that go to the heart of the business’s existence, and shareholders have an important voice in these matters.
The Benefits of an Orlando Shareholder Dispute ADR Firm
Shareholder disputes that are litigated in court and be costly and time-consuming – two characteristics that threaten the profitability of the company. Feldman Mediation & Arbitration Services is your Orlando alternative to shareholder dispute litigation. Our firm provides alternative dispute resolution services aimed at addressing the subject matter of the dispute as quickly and conclusively as possible. Whether you believe a third party arbitrator needs to hear the evidence of the case and render a decision or you believe the two parties can work their disagreement out through the services of a mediator, Feldman Mediation & Arbitration Services is ready and equipped to help you.