Corporate Governance Dispute
May 13, 2015OUTCOME: Temporary Injunction granted.
A shareholder owning 33.3% of the outstanding stock had an alcohol problem. The shareholder's owning 66.6% of the outstanding stock signed a Shareholder Consent in Lieu of Meeting replacing the Corpor ... ate Board with the shaerholders owning 66.6%. The new Board then removed the 33.3% shareholder as President of the corporation. The 33.3% shareholder began interfering in company business leaving vendors and clients to wonder who actually had control of the company. The company was forced to seek a declaratory judgment and temporary injunction.
