Board of Directors Disputes/Litigation
What happens when owners or shareholders of a corporation have a business dispute? Does the dispute always result in litigation, or are there ways to manage disputes so as to avoid litigation entirely? Board of directors disputes happen more often than people might expect. In order to do what is best for the business, it is important to get these disputes settled as quickly as possible and to get back to work on the goals of the business.
What Does a Board of Directors Do?
Before we discuss options for handling board of directors disputes, it is important to understand exactly what it is that a board of directors does in a corporation. Setting up a corporate board of directors is one of the first steps when creating a corporation. The individuals who make up the board of directors have a number of different duties, including but not limited to:
- General responsibilities for the overall mission of the corporation;
- Fiduciary duty with respect to shareholders; and
- Responsibilities to ensure that the corporation runs efficiently.
Directors are not responsible for the day-to-day operations of a business, but they must abide by the bylaws of the corporation, and they must act in the best financial interest of the business and the shareholders.
What Are the Options in Board of Directors Disputes?
What leads to board of directors disputes? In some cases, concerns might arise about a director performing his or her fiduciary duties. In other cases, there may be concerns about a director putting his or her own interests above those of the business. Board of directors disputes can occur among or between directors on a corporate board, or disputes can arise between directors and shareholders. In either case, an experienced Oakbrook Terrace corporate lawyer can assist you.
The way that board of directors disputes are handled depends upon the nature of the dispute. When there are disputes among or between directors about the mission of the corporation, it may be possible to avoid litigation and to settle the dispute with the help of counsel. In some situations, however — such as those in which a director is accused of breaching his or her fiduciary duty — litigation may be necessary to remove the director from his or her position. Illinois law governs the removal of directors and other issues related to corporate disputes.
Contact an Experienced Oakbrook Terrace Corporate Law Attorney Today
When you own a small business or are on a board of directors of a corporation, disputes within the business can be extremely problematic. You most likely will want to handle the dispute without needing to go through litigation, but sometimes litigation is necessary. It is important to have an experienced DuPage County business law attorney on your side throughout this process. The dedicated team at Farooqi & Husain Law Office regularly provides counsel to small business owners in the Muslim community of DuPage County, and we can speak with you today about your case. Contact us for more information.