Shareholder and Stockholder Rights

Massachusetts Corporate Law Attorneys

Being a shareholder or stockholder in a privately held company, a closely held business or a partnership can have magnificent rewards. Financial success is an important aspect of being a shareholder, as is the freedom to help control the direction a business takes in order to achieve even greater prosperity. At the Boston law firm of Rudolph Friedmann LLP, our corporate attorneys have an active practice providing advice regarding majority and minority shareholders’ rights.

Shareholder Rights Under Corporate Law

Shareholder rights have a firm basis in business law. If shareholder rights are violated, the wronged party has legal rights against other shareholders and perhaps against third parties, if company funds have been fraudulently transferred.

At Rudolph Friedmann LLP, we understand the methods that majority owners and equal partners may use to enforce their preferences on other owners, or to “freeze out” or “squeeze out” a minority partner or shareholder. We encourage you to seek legal advice as early as possible if you suspect violation of your shareholder or investor rights.

We have the resources and knowledge to investigate such potential violations as:

  • Withholding of promised dividends, voting rights or positions in the business
  • Termination of key business relationships
  • Threats to reduce the value of the company if you do not comply with the majority’s demands
  • Termination of key contracts that you control
  • Lockouts and freeze-outs
  • Refusal of access to corporate books and records
  • Deliberate campaign to reduce the value of your stock
  • Payment of majority shareholders’ personal expenses from company funds
  • Payment of exorbitant salaries and benefits to majority stockholders
  • Wrongful termination of employment of minority shareholders
  • Pressure or demands to sell your interests lower than their proper values
  • Sale of company assets to majority shareholders at less than fair market value

In shareholder rights cases, our goal is to protect our clients’ financial interests in their businesses. Often, authoritative negotiations will suffice to restore your shareholder rights. If, however, negotiations fail, our business litigation practice gives us the tools required to pursue your interests via shareholder dispute litigation in federal or state courts.

Receive answers to your questions about shareholder rights and potential violations. Consult one of the talented business attorneys at Rudolph Friedmann LLP. Call 617.723.7700 or contact us online.

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