Shareholder representation involves real risk. There are fiduciary responsibilities and the risk of being held personally accountable. With litigation, the shareholder representative may become a defendant, and always becomes embroiled in the proceedings. Being a named party becomes matter of permanent public record. The shareholder representative is often responsible for defense costs and any ultimate liability. Indemnification may not be available and, if available, is always subject to the indemnifying parties’ ability or willingness to pay. We allow shareholders who might otherwise serve as the representative to avoid the personal, professional and financial risk of being involved in adversarial activity post-closing. We assume the fiduciary responsibilities to shareholders and the accountability associated with them. We become the point person on all claims and disputes with the buyer, and are responsible for seeing them through to resolution.
Shareholders may have or develop interests and motivations different from other shareholders. For example, shareholders might, by virtue of the securities they held, have different economic interests. They may also have some relationship with the buyer, ranging from employment to an expectation of future deals. We provide independent representation of all shareholder interests, without bias, conflict or agenda. Our objective is to protect and maximize the returns all shareholders expect to receive from the transaction.
Protect Your Time
Being a shareholder representative is burdensome and intensive at times. The work is onerous, unpredictable and requires a substantial dedication of time and effort. For most, this job is a distraction from their other professional responsibilities. Our only business is shareholder representation. We allow shareholders to outsource the burden and responsibility of servicing as a shareholder representative to dedicated professionals. We have the people and resources to take on all responsibilities of the job.
Access To Information
Post-closing, shareholders want to know the timing and amount of distributions, escrow account balances, status of claims and progress toward earn-out payments. Understandably, individual shareholder representatives are ill-equipped to generate the detailed reports shareholders deserve to receive. We understand the importance of shareholder communication and provide shareholders detailed reports on all information relevant to their post-closing economic interests. Our industry-leading, state-of-the-art software system tracks and reports transaction data on a 24/7 basis. We assign dedicated client service specialists to each transaction to oversee all reporting and respond to questions immediately.