Disputes between founders and shareholders are among the most destructive challenges a business can face. What often begins as a shared vision can fracture due to disagreements over strategy, mismanagement, or breaches of trust, threatening the very existence of the enterprise. These internal conflicts are not mere business disagreements; they are complex legal battles that require a sophisticated understanding of corporate law and strategic litigation. At Legal Sandbox, we provide expert legal representation to navigate these sensitive disputes, protecting your investment, enforcing your rights, and seeking resolutions that safeguard the company's future.
Our approach is tailored to the specific nature of the conflict, which often centers on a breach of fiduciary duty by directors or majority shareholders. This can manifest as self-dealing, usurping corporate opportunities, or gross negligence that harms the company's value. We also handle cases of minority shareholder oppression, where those in control use their power to unfairly prejudice smaller stakeholders, often through dilutive share issuances or withholding dividends. We begin by analyzing the company's charter, shareholder agreements, and the actions in question to build a robust strategic position, always prioritizing negotiated settlements or structured buyouts to preserve value and avoid costly litigation where possible.
When litigation becomes necessary, we are equipped to deploy powerful legal tools under the Law of Georgia on Entrepreneurs. A key instrument in protecting the company itself from wrongdoing by its own management is the derivative action (or derivative suit). This is a unique lawsuit where a shareholder, holding at least 5% of the shares, can sue a third party (often a director) on behalf of the company. This action is essential when the company's management has failed or refused to pursue a valid claim, usually because they themselves are the wrongdoers. Our lawyers meticulously manage the procedural complexities of derivative actions to hold directors accountable and recover damages for the company.
Beyond derivative suits, we represent clients in direct actions for harms suffered personally, such as the denial of voting rights or access to corporate information. Whether through forceful negotiation, mediation, or aggressive litigation in Georgian courts, our objective is singular: to resolve the dispute in a way that aligns with your best interests. We understand the high stakes involved in founder and shareholder conflicts and provide the tenacious, strategic advocacy required to protect your life's work and ensure that your rights as a stakeholder are respected and upheld.