Skilled and experienced resolution of legal disputes.

Legal action may remedy breaches of fiduciary duty

Business relationships can often act as fruitful enterprises for many individuals. Because businesses typically have many parties involved at various levels of power and responsibility, you and other individuals associated with the company likely have to place your trust in the abilities and actions of other higher-up parties. In many cases, these higher-up individuals make business decisions for the benefit of the company.

Unfortunately, as a company shareholder, you may find yourself feeling at times that board members have not taken your best interests into account. As a result, you may begin questioning the nature of the business relationship.

Fiduciary duty

When a relationship exists between company board members and shareholders, a fiduciary relationship forms. With such relationships, board members act as fiduciaries and have a fiduciary duty to the shareholders, or a duty to act in the shareholders' best interests. Often, establishing such relationships through contract agreements helps ensure that all parties remain aware of expectations and duties.

Breach of fiduciary duty

If a single board member or multiple board members begin carrying out actions that do not act in the best interests of you and the other shareholders, you could consider those actions a breach of fiduciary duty. In some cases, a board member may carry out questionable actions if they could result in personal benefits for him or herself. Depending on the terms of a contract and expectations of these duties, various actions could result in such a breach, such as:

  • Failure to disclose pertinent information
  • Misappropriation of funds
  • Misuse of position
  • Failing to attend to responsibilities and duties

Unfortunately, a breach of fiduciary duty could result in damages for the shareholders, whether monetarily or otherwise. As a result, you may wish to consider taking legal action to remedy the wrongdoing.

Legal claims

If you do feel the need to file a lawsuit, you will need to prove several aspects of your case. First, you must provide proof that the defendant had duties to you, and presenting a contractual agreement as evidence may help. You must next provide evidence that a breach took place. Lastly, you must have suffered damages as a result of the breach.

You will likely need a significant amount of information in order to prove your claims. Therefore, you may wish to enlist the assistance of an experienced California attorney. With the help of a legal professional, you could more easily organize the necessary information and better understand how to present your case.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Your Solution Starts Here

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

office

Chodos & Associates
1880 Century Park East
Suite 615
Los Angeles, CA 90067

Toll Free: 866-986-7255
Phone: 310-598-3405
Fax: 310-203-3866
Map & Directions