Shareholders can include individuals and organizations that own shares of a company’s stock, thereby making them owners in part of the business. Shareholders can own one share or much more of a company’s stock, providing that shareholder with fractional interest in the business and the ability to make certain decisions about how the business is run. For example, shareholders have the ability to vote on certain decisions about how the business is being managed, or who is on the board of directors. When shareholders cannot agree, a shareholder dispute can occur. Some shareholder disputes are relatively minor and can be handled with informal negotiations, but other shareholder disputes can ultimately result in a sale or buyout.
If you have questions or concerns about resolving a shareholder dispute or preventing a shareholder dispute in the first place, our Santa Fe business litigation attorneys can assist you. In the meantime, the following are some potential options for resolving a dispute among shareholders.
Negotiation
Depending upon the nature of the dispute and the issues at stake, it may be possible to engage in more informal negotiations in order to resolve the dispute, especially with assistance from a Santa Fe business litigation lawyer. Our business litigation attorneys want to help you resolve your dispute before it reaches the need for litigation, and we can discuss negotiation strategies with you.
Mediation
Sometimes the parties involved in the shareholder dispute can enter into mediation. As a form of alternative dispute resolution (ADR), mediation can allow shareholders to avoid the time and expense of litigation while reaching a resolution that they developed through discussion with the other party or parties. To be sure, mediation gives the parties an opportunity to voice their concerns and to engage in communication in order to resolve the dispute. In mediation, the parties do not present their cases, and a mediator does not “hear” the case. Rather, the mediator is present to facilitate communication between the parties and is a neutral third party. Any resolution that is reached through mediation will only be binding if the parties all agree to it. Otherwise, it is still possible to take the case to court or to consider other options for resolving the dispute.
Arbitration
Depending upon the circumstances, another form of ADR may be possible—or even required—to resolve the dispute. While arbitration is a form of ADR, it is more akin to a trial in form. A neutral third party known as the arbitrator will hear from both sides and will make a ruling on the dispute. In most cases, the arbitrator’s ruling is binding. Arbitration in Santa Fe is usually governed by New Mexico’s Uniform Arbitration Act.
Litigation
It may be necessary to move to litigation if no alternative resolution method is possible. The results of the litigation may necessitate a buyout. Given that litigation can be time-consuming and costly, our attorneys want to do everything we can to help you resolve a shareholder dispute before it reaches this point.
Contact Our Business Litigation Lawyers in Santa Fe
Do you need assistance with a shareholder dispute or another business dispute? Our New Mexico business litigation attorneys can speak with you today about options. Contact Slate Stern Law for more information.