Help Resolving Shareholder Disputes
Shareholders are entitled to the protections afforded by the fiduciary duties outlined in the Texas Business Organizations Code. If you are a shareholder in a corporation and are experiencing a dispute or breach of these duties, a Conroe Texas shareholder dispute lawyer can help you negotiate or litigate your dispute. Fiduciary duties are required in any major corporate decision or action, including an acquisition, merger or even regarding seemingly mundane day-to-day operating decisions. The following describes each fiduciary duty as interpreted by Texas courts.
Duty of Loyalty
The duty of loyalty imposes a responsibility to make corporate decisions in the best interests of the shareholders. Courts have routinely found a breach of this duty in situations wherein a director or member of the board has either usurped a corporate opportunity for his own self-interest or has participated in corporate decision-making with an eye toward self-dealing. Transactions in which a director or board member stands to receive financial gain are not necessary a breach of the duty of loyalty provided full disclosure is given by the interested individual and disinterested shareholders or members approve the transaction. If you believe your corporation may have engaged in self-dealing or self-interested business transactions absent full disclosure, a Conroe Texas shareholder dispute attorney can help you challenge the decision to ensure its fairness to all shareholders.
Duty of Care
Texas law requires directors to exercise prudence and caution when investing corporate assets and managing corporate affairs. This is not to say that every single transaction must net positive results, as market reaction is often unpredictable. However, a director may face liability for negligent transactions or those made in bad faith.
Duty of Obedience
Corporate leaders are prohibited from participating in ultra vires acts, or those which are beyond their power. Known as the duty of obedience, directors may face liability for directly participating in this type of activity or allowing such activity to continue despite knowledge of its being outside the scope of the corporation's operating documents.
Contact an Experienced Conroe Texas Shareholder Dispute Lawyer Today
Attorney Chris Peterson of the Peterson Law Group can assist you if you are dealing with a shareholder dispute. Contact the office today to speak to a Conroe Texas shareholder dispute lawyer: (936) 337-4681.
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