Corporate officers and directors of any company are required to act in the best interests of the company. At times, however, officers or directors put their own interests ahead of the company and ahead of the shareholders they are supposed to represent.
Conduct to Look Out For
You should be concerned if you notice that officers or directors act in one of the following manners, which are inconsistent with the company’s (and your) best interests:
- Preferential stock treatment
- Back-dated stock options or stock fraud
- Preferred funding treatment in a proposed merger
- Improper management or fraud
- Any other action where a shareholder or the corporation suffers harm.
When those in charge act in a way that harms the company or the shareholder, a shareholder derivative lawsuit can be filed. This is a lawsuit filed on behalf of the shareholders to remedy the wrongs caused by corporate officers.
Call a Los Angeles Securities Lawyer Today
Not every unwise management decision is actionable. Corporate leadership generally has broad discretion in making business decisions. But when officers or directors act in a way that is contrary to the best interests of a corporation and its shareholders, you may have certain legal rights as a shareholder. Contact an experienced Los Angeles securities lawyer today to discuss your shareholder rights.