The Key to Ensuring the SLC Process Produces a Reliable and Useful Evaluation of Shareholder Claims

If done properly, the SLC's conclusions may act as an absolute bar to a shareholder's claim of malfeasance, should it be determined that prosecuting such a claim is not in the company's best interest for legal or business reasons.  However, if the SLC falls into any of the myriad pitfalls from its formation to its final report, this powerful tool allowing the corporation to retake control of its business operations can have drastically negative outcomes- from wasting time, money, and insurance reserves on a useless SLC report to new claims against directors for failing to adequately investigate shareholder allegations.

Knowledgeable legal counsel will make all the difference in determining whether your SLC produces a report resulting in the dismissal of a shareholder claim or merely runs up the cost and aggravation of the shareholder claims.  The first step that any SLC must take is to retain its own counsel to guide it through the process from start to finish.

Competent SLC attorneys will analyze the make-up of the SLC to determine that each of its members will stand up to judicial scrutiny as being independent and reliable to make the proper conclusions.  From that point, counsel for the SLC will ensure the SLC is taking all necessary steps to adequately investigate the shareholder's claims.  An SLC investigation will entail: the review of hundreds, if not thousands of pages of documents; interviews of all relevant parties, both inside and outside the company; consultations with attorneys for both the shareholders and the officers, directors, or employees accused of wrongdoing; and a final report and recommendation containing a detailed analysis of the legal and business issues guiding the SLC's ultimate determination.

The bottom line: knowledgeable attorneys are essential to making sure your SLC does what it takes to take the reigns of the corporation back from a demanding shareholder.