If shareholder disputes arise and legal intervention becomes necessary, a litigator steps in. Here’s a brief explanation from a Las Vegas litigator lawyer of their role and how they can help to bring clarity and resolution to shareholder disputes.
Assessing the Situation and Identifying the Issues
A litigator’s first task is to thoroughly assess the situation to identify the root cause of the disagreement, whether it’s a financial issue, a matter of control, or allegations of illegal behavior. This involves reviewing the company’s bylaws, shareholder agreements, and any other legal documents that govern how the company is managed. A litigator’s ability to interpret and analyze the relevant documents helps determine whether the dispute can be resolved, and, if so, how.
Facilitating Negotiation and Mediation
The litigator will often try to resolve the matter through negotiation or mediation before pursuing legal action, since in many shareholder disputes, litigation is a last resort. In negotiations, the litigator represents their client in discussions with the opposing party, advocating for a settlement that satisfies their client’s interests.
In mediation, an impartial third party helps facilitate discussions between the disputing shareholders. The litigator works with their client to present their case in hopes of reaching a compromise and avoiding the time and expense of court proceedings. This process can be particularly useful when the shareholders want to maintain a working relationship after the dispute is resolved.
Pursuing Legal Action in Court
If negotiations or mediation fail to resolve the dispute, a litigator will prepare to take the case to court by filing the necessary legal documents, such as complaints or motions, and gathering evidence to support the client’s position. In court, the litigator presents the case, questioning witnesses, submitting evidence, and delivering arguments to the judge or jury.
The goal is to prove that the client’s rights have been violated and to seek a legal remedy. Legal remedies could be financial compensation, changes to the company’s management, or other actions that address the underlying issues.
Protecting Shareholder Rights
Shareholders are entitled to specific legal protections, including the right to receive accurate information about the company’s financial health and the right to a fair distribution of profits. When these rights are infringed upon, a litigator steps in to hold the responsible parties accountable. This often involves working closely with forensic accountants and other experts to uncover instances of fraud, mismanagement, or breach of fiduciary duty.
Offering Strategic Advice
A litigator provides valuable strategic advice throughout a shareholder dispute, explaining the potential risks and benefits of each action. Shareholder disputes can be highly emotional, especially when they involve family businesses or long-standing partnerships. A good litigator helps clients with a calm, outside perspective, and advises clients on the best course of action, whether that’s settling the matter privately, pursuing mediation, or taking the case to court.
If you are involved in a shareholder dispute, contact Hutchings Law Group, Attorneys at Law, or come into our offices here in Las Vegas, NV, to discuss your case with our experienced team.
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