Derivative Actions
Austin Director Duty Lawsuit Attorney
For Astute Legal Advice Regarding Derivative Actions
Austin, Texas, Business Law Attorney John McDuff
When a corporation has a legal claim against an individual or legal entity, the directors presumably should honor their duty to the corporation and bring suit to protect the corporation’s interests. This may be considered to be a matter of fiduciary duty, especially when large sums of money are at stake.
Conflicts of Interest, Negligence to a Corporation
However, there are occasions when conflicts of interest, negligence or other forms of unacceptable behavior result in the corporation failing to act. This failure to file suit against wrongdoers may diminish the value of the corporation, resulting in loss to shareholders.
Protection of Share Values
Directors of a corporation have a duty to shareholders to exercise due diligence to protect and increase the value of shares held by investors. When this duty is breached, individual shareholders or groups of shareholders can bring a lawsuit against a wrongdoer on behalf of the corporation, to protect and increase the value of the shares of investors. Such derivative actions should be entrusted to an attorney who is highly experienced in business law.
The law offices of John McDuff, Attorney at Law, in Austin, Texas, is a valuable resource for shareholders and corporate directors alike who become involved in derivative actions as plaintiffs or defendants. I am an experienced litigation attorney with a significant business background. My effective advocacy on behalf of shareholders and other key players in the world of business is well-recognized by past clients. Call 512.457.1177 to schedule an appointment.
The Most Effective Course of Action
Some clients of John McDuff, Attorney at Law, have found derivative actions — whether threatened or pursued — to be an effective way of protecting their shares’ value. I try to take other approaches to the matter before I sue on a derivative action, such as talking with the directors. However, litigation is often necessary. This is a useful tool for those who are wronged. Frequently a cause of action against the directors is also included in the pleadings. Contact me to discuss your concerns regarding a derivative action lawsuit, whether you are a wronged shareholder or an accused corporate director.
The quality of my work is well recognized by my clients, and I have received the AV rating* under Martindale-Hubbell’s peer review rating system. Along with my personal qualifications, my firm is committed to providing truly personal service to our Business Litigation clients. At the law offices of John McDuff, Attorney at Law, you will have access to your lawyer 24/7/365.
My clients are predominantly from Austin and Central Texas, and occasionally from other states.
*AV, BV and CV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.
Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the Judiciary. Martindale-Hubbell Ratings fall into two categories - legal ability and general ethical standards.
