Shareholder Disputes Lawyers in Troy, MI

Michigan Shareholder Dispute Attorney

Shareholder disputes can have significant financial consequences for big corporations and closely held companies. Resolving disputes among shareholders or claims of oppression made by minority stockholders can distract a corporation from growth and profits. Shareholder claims also expose companies to potentially expensive liability.

Experienced legal counsel can help you pursue an efficient resolution when you or your business has a shareholder dispute. Turn to August Law for help. For over 30 years, principal attorney Gary August has represented individuals and corporations in some of Michigan’s most complex lawsuits. Mr. August always looks for ways to achieve a successful outcome for his clients at a reasonable cost. Our firm has earned a reputation for handling many of the highest-profile cases in the state.

After getting into a legal dispute over shareholder rights, a seasoned attorney can guide you through the litigation process and help you pursue a winning outcome. Contact August Law for a free initial case evaluation. Let’s discuss how a Michigan shareholder disputes lawyer can assist you with resolving your legal matter.

Understanding Shareholder Oppression in Michigan

Many shareholder disputes involve claims asserted by minority shareholders, which allege that a majority shareholder, controlling stockholder, or corporate directors and officers have frustrated the minority shareholders’ exercise of their rights or have unfairly prejudiced minority shareholders. Shareholder oppression involves arbitrary, heavy-handed, or illegal conduct by corporate controllers. Oppression claims frequently arise from allegations such as:

Squeeze-Out/Freeze-Out

A squeeze-out occurs when a majority shareholder tries to force minority shareholders to sell their interest far below fair market value. A majority shareholder or corporate directors can freeze out a minority shareholder by preventing the shareholder from exercising their rights or denying them any benefits as a shareholder. This could happen as a result of refusing inspection of books and records, cutting minority shareholders out of management decisions, or locking minority shareholders out of company property or computer systems.

Diversions of Corporate Opportunities

A minority shareholder may claim that a majority or controlling stockholder has diverted business opportunities away from the company and directed those opportunities to the controller’s other corporate ventures or the controller’s affiliates and partners, usurping the profits the company could have obtained from those opportunities.

Mismanagement/Fraud

Oppression claims can involve mismanagement or fraud by a majority shareholder or company officers/directors, including refusing to declare dividends, diverting company profits to the majority shareholder(s), or using company funds to pay for personal expenses.

Types of Michigan Shareholder Disputes We Handle

At August Law, our seasoned legal team represents companies and shareholders in stockholder litigation arising from claims such as:

• Breaches of fiduciary duties by directors and officers
• Derivative claims
• Alleged corporate mismanagement
• Improper refusals to declare/pay dividends or improper diversion of corporate profits to majority shareholders
• Disputes over transfers or resale of shares
• Shareholder deadlock
• Controlling/majority shareholder or director/officer conflicts of interests
• Diversion of corporate opportunities
• Mergers and acquisitions
• Breaches of shareholder agreements or bylaws

Legal Remedies in Michigan Shareholder Disputes

A shareholder who files a lawsuit to resolve their dispute with fellow shareholders or company managers may obtain various forms of relief. Shareholders might pursue compensation for financial losses incurred due to company leaders’ misconduct, such as reductions in share price or lost merger/sale consideration. Shareholders may also pursue equitable relief, such as court orders requiring the company to provide access to books/records, hold annual meetings/shareholder votes, or declare and pay dividends as required by the bylaws or shareholder’s agreement.  

In Michigan, courts also have expansive authority to order relief for a minority shareholder who suffers from oppression. Courts can: 

• Cancel corporate actions that oppress minority shareholders
• Order majority shareholders to disgorge improperly received assets
• Appoint a receiver for the corporation
• Order the company or a majority shareholder to purchase the minority shareholder’s interest at fair market value without discounts
• Dissolve the company 

How Can a Michigan Attorney Help You Resolve a Shareholder Dispute?

A shareholder dispute or oppression claim may require substantial evidence, including corporate records, financial statements, and emails/text messages. Cases can also involve extensive litigation over discovery, including claims of confidentiality/privilege for corporate documents.

An attorney from August Law can guide you or your company through the complex details of a shareholder dispute. Our firm will thoroughly investigate the case to secure and organize all relevant information. Our legal team will leverage our extensive knowledge and experience to ensure you understand your rights, obligations, and options. We can also calculate your financial losses or potential liability in a lawsuit.

Our corporate dispute attorneys will take the time to understand your needs, goals, and financial circumstances to formulate a case strategy to secure a favorable result efficiently. However, our accomplished litigators stand ready to fight for your interests in court and at trial if necessary.

Why Choose August Law?

Shareholder disputes/litigation can involve complex factual and legal issues and massive financial stakes. Hiring the right legal counsel can make a difference in the success you achieve in your case. For years, companies and corporate shareholders have turned to August Law for experienced counsel and advocacy in high-profile shareholder lawsuits and oppression claims because:

We Have a Track Record of Winning

Our firm focuses on winning our clients’ cases, not running up legal fees. Few attorneys and firms can boast the same sustained record of success as we have, which includes winning the largest reported settlement/verdict in Michigan in 2010. Over the decades, principal attorney Gary August has consistently obtained favorable results for his clients in the highest-profile and high-stakes complex litigations.

We Have Earned Top Recognition in the Legal Community

Our dedication to success has not only earned us the trust of clients who have stayed with us through the years but also earned our attorneys and firm prestigious awards and recognitions. Gary August has an AV rating from Martindale-Hubbell and a 10.0 rating from Avvo, the top ratings on two of the country’s leading lawyer listing and peer-review services. Mr. August has also received awards and recognition from legal publications such as Super Lawyers, Best Lawyers in America, and Michigan Lawyers Weekly.

We Have the Knowledge and Experience to Take on Complex Litigation

Many lawyers may claim extensive knowledge about your legal issues but charge you high fees for “research” to learn the law governing your case. The attorneys at August Law have significant experience in numerous legal claims, giving us a fundamental understanding of the issues in your case even before you walk through our doors.

We Always Act Ethically and Professionally

Our firm strives to win a successful result for our clients and to ensure their satisfaction with our service. Although we work hard to win, we never try to win at “any cost” since our client will bear those costs. We take the time to understand your goals and financial situation to provide effective legal representation at a reasonable cost. We also take our responsibility to our clients and the courts seriously, never cutting corners in any case we handle.

Contact Us Today to Discuss Your Rights and Options

When you find yourself in high-stakes shareholder litigation, you need highly experienced legal representation to protect and advocate for your or your company’s interests.

Contact August Law today for a free, confidential consultation with an experienced shareholder litigation attorney. We can discuss your options for obtaining a favorable resolution in your case.