Corporate Disputes

William J. Tucker Law > Law Service > Corporate Disputes

A corporation is a business entity through which individuals can typically conduct business without risking personal liability for acts on behalf of the corporation. Shareholders create the corporation and elect directors. Directors have the authority to operate all aspects of the corporation’s business, but typically elect officers such as a President, Vice President, Secretary and Treasurer to run day-to-day operations.

Corporate disputes can take many different forms. If officers or directors mismanage the corporation, or misappropriate its assets, shareholders can sue them for breach of fiduciary duty on behalf of the corporation. If an officer, director or incorporator makes misrepresentations of false promises to induce individuals to invest in the corporation, the investors can sue them for fraud and violation of the securities laws. They may then rescind their purchase of stock or obtain money damages. If a shareholder commingles his or her personal assets with those of the corporation and ignores corporate formalities, A third party may “pierce the corporate veil” and hold him or her liable for acts taken on behalf of the corporation.

These are just some of the corporate disputes business litigators handle.

For articles discussing various issues relating to corporate disputes, see the Blogs section of this website.