Dinn, Hochman & Potter, LLC

Shareholder disputes cause controversy within CBS

Investors, stockholders and board members all have a vested interest in businesses with which they are associated. In each case, the individual is often motivated to do what he or she believes will provide the greatest return to both the company and the individual. As a result, these individual can disagree about how specific business decisions and funds are handled, thus leading to shareholder disputes within the Ohio business.

Recently, CBS has found itself at the center of a dispute with one of its major shareholders. At the center of the dispute is a vote regarding dividends to be paid. If the vote passes, National Amusements will effectively lose some of its voting power. The shareholder principally involved in the dispute is the current president of National Amusements.

The dispute involves more than just voting rights. CBS indicates that National Amusements has been urging CBS to merge with Viacom, which is another company under the control of National Amusements. Lawsuits, restraining orders, special committees and the like have all become a part of this particular business decision.

The average Ohio business will not garner the attention that a CBS shareholder dispute will, yet the dissension and conflict caused by such disputes will still be apparent. While all parties are interested in what they each believe to be in the best interest of the company, this is often seen in light of what is also in the best interest of a particular group of shareholders. Not all shareholder disputes are unavoidable; when there is a likelihood of such a problem, experienced legal counsel can prove invaluable in protecting the company and its assets.

Source: wboc.com, "Delaware Judge Deals Major Blow to CBS in Dispute with Chief Shareholder", Tom Lehman, May 17, 2018

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