Corporations are among the most common business entities formed each year in Virginia. While each entity type offers different benefits, corporations allow members—or shareholders—to own a portion of the company through stock offerings. However, both small and large corporations are subject to strict scrutiny regarding shares, and the company can face serious legal consequences due to the actions of a few shareholders or directors.
At the same time, investors must remain cautious. If you are seeking to invest in a company, it is critical to be aware of any underlying financial or legal issues. When disputes arise—whether involving misrepresentation, director misconduct, or shareholder actions—they may fall under securities arbitration. If you or your company are facing challenges related to securities arbitration & investor issues in Virginia, contact an experienced business attorney at MichieHamlett for guidance.
Corporations have made up the backbone of the American economy for a number of years, although not without their own struggles. Insider trading and other white collar crimes led to the implementation of the Securities and Exchange Commission to prevent future crimes from occurring. However, as corporations and their technologies evolve, white collar crimes have taken on new forms of implementation, and other new corporate improprieties have occurred. Investors now have to research thoroughly into a company to ensure they are purchasing the stock they believe they are purchasing, and corporations themselves need to be adamant about following all director and shareholder actions.
Corporate agreements and contracts exist to let each party understand their own obligations. Corporate bylaws specifically lay out the duties of directors and shareholders within a corporation. If either party breaches these specific fiduciary duties, they can be subject to legal consequences and responsible for the financial repercussions of their actions. On the other hand, if an investor is misled into investing into a company based on fabricated financial numbers, the company may be responsible for any financial harm that occurs to the investor.
Common issues in this realm of corporate law include:
Disputes involving investments and corporate governance can be complex and financially damaging. If you are dealing with securities arbitration & investor issues in Virginia, the attorneys at MichieHamlett can help protect your interests and pursue fair outcomes. For trusted legal support, contact us today to schedule a confidential consultation.
