Corporations are unique for the fact that they have shareholders who, in essence, are part owners. The amount of corporate ownership a shareholder possesses is in correlation with the percentage of stock he owns. Shareholders are somewhat like partners in a business, but with some significant differences. A Reno corporate services attorney will discuss in more detail shareholder rights and disputes with you, but the following should provide an overview.
Rights and Benefits of Shareholders
Whether you own a few shares of common stock or are a major shareholder, you have the power to vote on corporate matters, as do partners. However, while partnerships generally provide for the contributions of both parties to the daily operations and management concerns, shareholders do not have such influence. Also, shareholders are allowed to inspect corporate records, just as partners are, but the former can also bring a lawsuit against the corporation for violations. Speak with a Reno corporate services attorney for more information about litigation.
Shareholders do retain certain risks. If the company fails, they face the possibility of losing their investment. However, they cannot be sued by corporate creditors, nor have their assets attached.
Disputes and Litigation
Occasionally shareholders become disenchanted with the corporation for certain business practices, and determine to seek legal remedy. Among matters which are often disputed are:
- Breach of fiduciary duty
- Fraud or deceptive practices
- Bad faith business practices
- Financial disputes
- Employment issues
If as a shareholder you have a dispute, consult with a Reno corporate services attorney. A lawsuit can prove very costly and time consuming, and there may be alternatives available.
Call a Reno Corporate Services Attorney for More Information
If you need assistance in a shareholder dispute, or have some other legal business matter, call (775) 824-0300 for a Reno corporate services attorney at Sutton Law Center.