Shareholder derivative suits occur when shareholders do not agree with company management. When the managers of a company have made certain decisions that affect the future of the company, shareholders that disagree with these decisions may feel that their only way to have their voices heard is by filing a shareholder derivative lawsuit. An attorney from Manavi Law Group, APLC can help a Board of Directors of a business by making sure the proper protocols are in place to avoid such lawsuits. We can also help your business if a shareholder derivative lawsuit has been filed against it.
Under the business judgment rule, managers of a company usually have the right to make decisions affecting the business. For the most part, any type of decision that is in the interest of the business can be protected under the business judgment rule. If a shareholder derivative lawsuit has been threatened against your company, it is imperative for your business to get in touch with a lawyer as soon as possible. You will also be able to benefit from the expertise that a lawyer can offer to the management of your business.
You may wish to hire an attorney to draft policies to help protect business. An experienced lawyer can anticipate many of the problems that could arise and impact the functioning of your business. To schedule your confidential corporate governance consultation, call (310) 879-5616 or contact us at your earliest convenience.