Skip to content

Shareholder Disputes

Reliable Shareholder Dispute Resolution in Los Angeles

shareholder dispute resolution in Los AngelesAt Forensic Accountants & Consultants, we understand how challenging it can be to balance the day-to-day management of your company and any financial conflicts that arise. If you find your company facing a shareholder dispute, get in touch with our skilled team of Certified Public Accountants and Certified Fraud Examiners. We work diligently throughout the year to find solutions to time-sensitive and complicated financial situations.

Since 2013, our firm has supported the individuals, business owners, and government agencies of Los Angeles with meticulous forensic accounting. Our team is knowledgeable regarding local litigation and is ready to assist you during a shareholder dispute. We are dedicated to uncovering the facts and financial truths of your individual situation. We get to the heart of the problem using forensic accounting, business valuations, fraud detection and prevention, expert witness testimony, and consulting.

Our team is ready to explore your situation and provide the efficient, meticulous forensic accounting you need. If you are seeking support with shareholder dispute resolution in Los Angeles, give our firm a call today to schedule your free consultation and learn how we can assist you!

Call: (213) 294-2750 Book a Consultation

What Are Shareholder Disputes?

A shareholder dispute is a disagreement over a company's goals, operations, finances, or governance. A dispute may arise between shareholders and the company's leadership or amongst a group of shareholders. Since shareholders have already invested a measure of their finances into the business in question, conflicts of this kind can quickly become hostile. Our team helps you determine the facts of the matter and come to an appropriate resolution or settlement.

5 Leading Causes of Shareholder Disputes

Shareholder disputes can occur for many reasons. It's vital to seek out experienced counsel in the earliest stages of your shareholder dispute before the problem escalates and harms your company's public image or finances. Our forensic accountants can assist with Los Angeles shareholder disputes such as:

  1. Fiduciary Misdeeds: As a shareholder of a privately-held entity, you have fiduciary duties to the other shareholders, even if the business does not employ you. If a shareholder withholds crucial financial information or has a conflict of interest, a substantial dispute may occur.
  2. Alleged Breaches of the Shareholder Agreement: Breaches of a shareholder agreement can occur in several forms. A breach may occur when one shareholder seeks to terminate the original agreement. An issue may also arise if one shareholder decides to sell shares in direct violation of their agreement, which is especially problematic when sold to a competitor.
  3. Disagreements Regarding the Company's Direction: Differing opinions over the company's management and objectives can cause substantial problems, especially for closely-held family businesses. Decisions that can lead to disputes include purchases of capital, large outlay, financial disruptions, and the firing of non-shareholder employees.
  4. Differences in Compensation or Contribution: As a business owner, it's essential to fairly compensate your team according to their training, responsibilities, and level of experience. When shareholder employees get paid at different rates for no apparent reason other than management bias or family connections, formal disagreements may occur. Another potential cause of a dispute is differences in shareholder contributions.
  5. Lack of Influence for Minority Shareholders: In a privately-held business, a minority shareholder is at a disadvantage since they possess a smaller portion of interest. Minority shareholders may have little-to-no say in the company's choices and direction. Many states have recognized this as a significant issue and protect the rights of minority shareholders, so they may not be frozen out of decisions and management. If a minority shareholder feels that they have been mistreated, they can initiate a suit against the majority shareholders.

How Our Forensic Accountants Can Help

business team in a meetingOne of the most effective strategies to reduce the risk of a shareholder dispute in Los Angeles is to implement a thorough, well-crafted, and substantial shareholder agreement. Having the contract reviewed by an accounting team and financial services lawyer can ensure that any areas of uncertainty are rectified. Our forensic accountants can assess the financial aspects of the agreement and provide consulting to make it as strong as possible.

Even a carefully planned and implemented shareholder agreement may not prevent all future problems. If you find your company involved in a shareholder dispute, we can help. We begin by reviewing your financial data to uncover the truth of the issue. By checking and organizing your records, we develop a comprehensive understanding of the situation at hand. We can detect partners involved in self-dealing, undisclosed liabilities, and fraudulent transactions.

The opening stages of our investigation are essential. By searching for and uncovering fraud early on, it may be possible to keep the case out of court by offering a settlement. Even if the case does not go to trial, we keep records of our results for future reference. As the investigation continues, our team can:

  • Perform a business valuation
  • Determine if the company is properly structured
  • Evaluate the equity balance logged in financial statements
  • Analyze received distributions

Resolving Los Angeles Shareholder Disputes With Forensic Accounting

Whether you're trying to reach a settlement for an ongoing issue or reduce the risk of future sharehodler disputes, our Los Angeles team is here to help. We provide the full-service forensic accounting you require to make sense of the situation. Call Forensic Accountants & Consultants today to set up your free initial consultation with our team!

Call: (213) 294-2750 Book a Consultation

Contact Us

Ask a Question

Find comfort in knowing an expert in accounting is only an email or phone-call away. (813) 382-0805

We Are Here to Help

We will happily offer you a free consultation to determine how we can best serve you. Contact Us

Get Our Newsletter

Subscribe to our monthly emailed newsletter to receive news, updates, and valuable tips. Subscribe