There are many good reasons to organize a business venture as a corporation. But by taking advantage of the corporate form, a company exposes itself to the complex, and often difficult to resolve, quagmire of shareholder disputes. In today’s article, I will briefly discuss some of the common ways a corporation can become embroiled in one of these disputes.
Shareholder disputes often occur is when an individual shareholder, or a group of shareholders, has a major disagreement with the direction of the corporation. These disputes can be caused by a wide range of problems, from personal animosity between owners to disagreement about the business plans of the corporation.