Dinn, Hochman & Potter, LLC

Former Uber CEO at center of shareholder disputes

After investing both time and money into a new enterprise, a business entrepreneur expects to reap the rewards of such a venture. Perhaps these rewards are in the form of income, or perhaps prestige is the ultimate goal. As the Ohio business continues to grow, it is possible that it will look for investors and shareholders to assist with further growth and development. While this scenario does provide the financial opportunity the company is looking for, it also opens the door to the possibility of shareholder disputes down the road.

One business enterprise is now facing its share of controversy between its board of directors, former CEO and major shareholder. Venture firm and shareholder Benchmark is now suing to remove Uber's former CEO from Uber's board of directors. In addition, in its suit, Benchmark is also looking to reduce the board by three spots.

Apparently, upon resigning as CEO of Uber, Kaslanick appointed himself to another board position. According to Benchmark, Uber's board added these three positions last year upon Kaslanick's request. Benchmark is now claiming that these board seats were fraudulently obtained and that they should be eliminated.

Of particular concern to Ohio based businesses is the question of who should have ultimate control of the company. On one hand, the entrepreneur who founds a business has a vested interest in its success. However, as a business grows, it often needs shareholders and investors to provide the funds and expertise to continue growth. As the company grows, the possibility for shareholder disputes and the need for legal guidance increases as well.

Source: techcrunch.com, "What was Benchmark thinking?", Connie Loizos, Aug. 11, 2017

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