As shareholder in a company you can find yourself a party to several types of court actions. If your rights have been infringed, it is important to consult with a lawyer at an early stage to determine what kind of remedy you could seek.
If you are a defendant in a shareholder dispute, it is important for you to understand the potential implications of an action and to come up a good strategy to defend it.
At O’Connor Richardson we have experience representing shareholders on both sides of a lawsuit. We will make every effort to ensure that it does not affect your business.
Types Of Actions
Where a shareholder is being unfairly prejudiced by the actions of the corporation, the appropriate action is to seek an oppression remedy. In this type of action, the Court can order the corporation to take an action, or to refrain from taking any action so as to protect the prejudiced shareholder.
If the directors of a corporation refuse to bring an action on behalf of the company, a shareholder or a third party can apply to the Court to represent the corporation in that action. This is called a derivative action.
If the Court allows the derivative action, the shareholder or the third party can represent the corporation in that lawsuit. He can then seek all the remedies available at law.
Where there has been a breach of the shareholder agreement, a party to that agreement can sue on the contract and seek damages for his loss, or an injunction preventing the breach.
These are the most common examples of disputes between shareholders. We understand that every case is unique, and we will use our experience to determine which course of action is best suited for you.
As an owner of your corporation, it is important that you understand your rights and develop a good strategy to assert or defend them. At O’Connor Richardson, we will be with you every step of the way.