When minority shareholders, partners, and other investors believe that entities in which they have invested are being operated in a less than ideal or risky manner, they may ask that a receiver be appointed to run the business. We have experience in both prosecuting and defending receivership proceedings.
In circumstances in which the overall operation of the business is not at risk but there is a strong suspicion of financial impropriety, an accounting may be sought. We are familiar with this tool, which can result in an independent analysis of the enterprise’s books and records. Although an accounting can be a useful remedy for a truly aggrieved minority owner, if ordered when not necessary, it can be terribly disruptive to the business. We work hard to keep our clients out of the line of fire when such requests are unwarranted.