Shareholder Disputes in Maryland
A shareholder typically has the right to inspect books, records, and receive communications from the board of directors so they can protect their interest. Also, the shareholder has the right, in some cases, to bring what is called a derivative action. This action is used to sue the board of directors, other shareholders, or the entity itself if there is some reason to believe that they are not performing responsibly or in line with the shareholder agreement.
To learn more about your rights during shareholder disputes in Maryland, consult with a seasoned attorney. An experienced probate lawyer could offer you legal advice on your situation and let you know what legal options you may have.
Derivative Action
Derivative actions can be used in shareholder disputed in Maryland. A derivative action is an action brought by shareholders on behalf of the corporation or the LLC. It is an action whereby the shareholders stand in the shoes of the corporation and go after a claim that belongs to the corporation. For example, if there is a claim against the director of a corporation and the board will not pursue the claim for some reason, the shareholders could file a derivative action against the company and pursue the claim as if the company was doing it itself.
Filing a Derivative Action
In order to file a derivative action about demand or futility, the shareholder has to first make a demand on the board of directors to investigate the claim or to take action. If a person does not make that demand, then courts will not likely allow the claim to proceed and get administrative processes.
Piercing the Veil
Piercing the veil is a legal concept whereby people try to get the individual shareholders or owners of an entity to be responsible for the debts of the entity. This is very difficult to do, as it generally requires a sort of fraud or the misuse of the corporate entity. It must be proven to the court that the corporate entity is not legitimate in one way or another. Piercing the veil during shareholder disputes in Maryland is a way of getting through the corporate veil to the owners and assigning the liability of the corporation to the individual owners.
Different Types of Claims Available to File in Maryland
There are many different types of claims a person can file or assert in the shareholder derivative action. An individual can assert almost anything, such as breach of contract. A person has some statutory claims that they have to make because of the shareholder derivative suit. They also might have some pleading requirements that they have to abide by. Generally, a person gets to plead the exact the same thing as fraud or breach of contract.
Speak with an accomplished lawyer today to learn more about your rights and available legal courses of action during shareholder disputes in Maryland. The sooner you contact an attorney, the sooner they could begin working on your case and helping you resolve your issues.