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SEC rules in favor of company in shareholder business litigation

On Behalf of | Mar 27, 2019 | Business Litigation

Shareholders are an important part of many big corporations in Oregon and elsewhere. These individuals often have input into certain decisions regarding company actions, and meetings allow for issues to be presented and for votes to take place on applicable subjects. Of course, there are also instances in which shareholders may take issue with company actions or lack of action, and disputes could lead to business litigation.

This type of dispute recently affected an energy company in another state. According to reports, the company did not find it necessary to draft a clean energy plan that would detail their intended efforts to become completely reliant on renewable energy by 2050. However, four shareholders for the company believed that drafting the plan was essential to the company.

The shareholders submitted a resolution for a vote as to whether the plan should be created. The dispute resulted in legal action taking place to reach an end to the conflict. The company believed that the shareholders were attempting to micromanage the company, and the U.S. Securities and Exchange Commission ruled in favor of the company. As a result, the submitted resolution will no longer be subject to a vote at the company’s annual shareholder meeting.

While most companies hope that any shareholder disputes can be resolved quickly and easily, that is not always the outcome. Fortunately, there are a variety of avenues that Oregon businesses can take to address such issues. In the event that business litigation is necessary, it is wise for company officials to discuss their situations with their legal counsel and to form strategies for moving forward.