When Can Shareholders Sue In Miami?
People often forget that shareholders are the ones who actually own corporations in Miami. As such, shareholders deserve to be treated fairly and honestly by various individuals involved in the running of the corporation, such as the CEO and the Board of Directors. If shareholders are subject to considerable misconduct, they have the right to file a lawsuit against any negligent parties. But what do these lawsuits actually look like, and under what circumstances can shareholders sue?
If you’re asking questions like these, it’s probably a good idea to connect with a qualified attorney in Miami who has experience with commercial litigation. Not only can these legal professionals explain when shareholders can potentially file lawsuits, but they can also help you deal with any potential lawsuits in the future. With their help, you can resolve these matters in an efficient, confident manner.
The Rights of a Shareholder
First of all, it’s important to understand that shareholders have certain rights:
- Shareholders have the right to inspect a company’s books and records
- Shareholders have the right to sue the corporation itself
- Shareholders have the right to vote on important issues
- Shareholders have the right to receive dividends
If any of these rights are violated, shareholders may have the opportunity to take legal action. However, it’s worth noting that corporations are not legally obliged to maximize shareholder value. This may be the company’s goal, but it is not a legal requirement.
When Can a Shareholder Sue?
There are a number of reasons a shareholder might sue a corporation’s board of directors or its officers. A “direct lawsuit” may arise due to to the following circumstances:
- A shareholder’s right to vote was not respected
- Dividends were promised but never paid
- Shareholders were prevented from inspecting records
In addition, minority shareholders can sue majority shareholders for many of the same reasons.
Another major reason why shareholders might sue is due to misrepresentation. This is when a corporation’s officers or board of directors intentionally misleads its shareholders, causing them to believe that the company is more successful than it actually is. A wide range of other facts may be presented in a misleading manner.
For example, a shareholder sued Norwegian Cruise Lines in 2020 because the company allegedly misrepresented the potential impact of the Covid-19 pandemic. Obviously, the pandemic completely rocked the cruise ship industry, but apparently, the company was assuring its shareholders that their losses would be minimal during the initial stages of the pandemic.
Enlist the Help of a Qualified, Experienced Attorney Today
If you’re dealing with a potential lawsuit involving shareholders in a corporation, it makes sense to enlist the help of a legal professional as soon as possible. Reach out to the Miami partnership & shareholder disputes & dissolutions attorneys at Alhalel Law at your earliest convenience, and we can help you resolve this matter with the utmost efficiency. We have considerable experience with commercial litigation, and we have assisted a number of corporations and shareholders in the past. Book your consultation today, and we can immediately start working on an effective action plan together.