Hiring a board of directors to help run a business is common, and often proves effective. Legally, the board of directors is expected to act responsibly and uphold their duties to the company, known as fiduciary duties. This means that they must put the company’s best interests ahead of their own when making decisions. When a member of the board breaches fiduciary duties, shareholders are usually harmed financially. As a result, shareholders have the right to take legal action and recover financial losses and other damages.
At the law offices of Williams Hart, our breach of fiduciary duty lawyers know how harmful it can be to the shareholders of a business when a board member acts in their own best interest over that of the company as a whole. Our Houston legal team knows how important taking legal action can be to your livelihood, and have experience in navigating the legal complexities of such a breach. Call us at (713) 230-2200 to learn more.
If a breach of fiduciary occurs, it is better to try to hold the individual accountable via a breach of fiduciary claim rather than a negligence claim. This is because a breach of fiduciary suit will not require an expert witness, whereas a negligence case will. If your business has suffered from a breach of fiduciary duty, you should take the following steps to ensure that you have the best chance at recovering your losses and protecting your legal rights:
Proof is often a difficult matter, but an attorney can help collect the evidence you need to support a breach of fiduciary duty case. There are many benefits to exercising this set of laws over other forms of neglect, which your attorney can go over with you.
Though some remedy options depend on the law in your state, an attorney will be able to discuss the best option for you. Some of the most common remedies include:
If you are seeking one of the above remedies, or an alternative action to recover losses, you should contact a lawyer.
At Williams Hart, we know how devastating a breach of fiduciary duty can be to your business, especially when you trust board members to have your business in their best interest. With over 30 years of legal experience, our Houston breach of fiduciary duty lawyers are prepared to help you remedy your losses so that you can maintain a successful business. If you are in need of a breach of fiduciary duty lawyer, please contact us today by calling (713) 230-2200.