Legal Remedies Available for Minority Shareholders in Leadership Disputes in Florida

As a minority shareholder in Florida, you may clash with the majority shareholders over the company’s path. For example, you might disagree with choices that favor short-term profits over long-term growth or feel left out of key decisions. When this happens, knowing your legal rights and options is crucial to protecting your interests.

Legal rights of minority shareholders

In Florida, minority shareholders have specific legal rights to shield them from unfair actions by majority shareholders. These rights include:

Right to vote: You can vote in board of directors elections, shaping the company’s direction.
Right to information: You can ask for and check the company’s financial and legal records.
Right to profit shares: If the company pays dividends, you get your share.

These rights are vital to ensure you have a say in the company’s operations.

Illegal, unfair actions by majority shareholders

Under Florida law, majority shareholders may do unlawful, unfair actions. These actions include:

Exclusion from decision-making: Not including minority shareholders in important decisions.
Not sharing information: Refusing to give access to financial records and other key company information.
Unfair dilution of shares: Making new shares to lower the ownership share of minority shareholders.
Misuse of company funds: Using company money for personal gain or without approval.
Unjustified removal from the board: Taking minority shareholders off the board without good reasons.

These actions can significantly harm minority shareholders and violate their legal rights.

Legal options for unfair treatment

When majority shareholders act unfairly, you have several legal options:

Direct lawsuits: You can sue the majority shareholders for breach of fiduciary duty or other common law claims.
Judicial dissolution: Under Florida Statute Section 607.1430, you can ask to dissolve the corporation if management is deadlocked or the majority shareholders act unfairly or harmfully.
Court-ordered buyout: You may ask for a court-ordered buyout of your shares at fair market value if the majority shareholders’ actions hurt your interests.

These options give you ways to address and solve disputes effectively.

Protecting your interests

We help investors and shareholders involved in disputes by protecting their interests and finding a solution to their conflict, whether through mediation, litigation or settlement. Contact us for a consultation.