A close corporation is generally a mid-sized or small company that has a low number of shareholders. By operating as a close corporation, these companies are able to receive certain exemptions from corporate regulations. However, there are still many protections available for the shareholders of these corporations. If you believe your shareholder rights have been violated, an experienced San Jose business litigation attorney can help.
Although the shareholders have aligned objectives when they create a corporation, or invest in one, their goals may change over the life of the corporation. This commonly leads to shareholder disputes. These disputes may arise among evenly divided shareholders (50-50) or between minority and majority shareholders. Some common issues that give rise to shareholder disputes involve control or direction of the corporation, financial difficulties, mismanagement, election of corporate officers, voluntary and involuntary dissolution, wrongdoing or oppression of minority shareholders.
If your business got to a point where you and the other partners fail to get along, the dissolution of your business can be as emotional as a divorce in family court. When you first enter into a business, you form an entity to limit your liability and save money on taxes. These advantageous benefits disappear when you decide to dissolve the business, but your liabilities will not.