Our office remains open to serve your important legal needs during these turbulent and challenging times. We are happy to schedule client consultations and client meetings by telephone or video-conference at your request.
Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Shareholder dispute continues concerning corporate governance

Affinity Gaming, a corporation that operates casinos in Colorado among other states, has become entangled in a dispute involving its two largest shareholders. The dispute concerns control over the company and the reconstituting of Affinity’s board.

Even though a tentative agreement appears to have been reached, there are no guarantees that a definitive agreement can also be reached. The CEO for Affinity had recently announced plans on leaving the casino in July. There is now an ongoing search for a replacement. Due to questions about the board’s governing practices in 2012, the CEO for one of the shareholders had already proposed a series of candidates for joining the board last year. This CEO has also made a number of offers to acquire outstanding shares at Affinity.

There are often a growing number of legal concerns that come about as a company expands.  These issues generally do not get any easier to resolve.  Disputes may lead to interruptions of business or poor governance that can result in millions of dollars in costs.  Also, as businesses expand they may also acquire other businesses as well and this can lead to another set of challenges.  

Experienced corporate and business attorneys can provide these entities the assistance they need when such expansion takes place.  Disputes over the way business is to be conducted can distract from the direction a corporation should be taking when involving such matters.  Having someone in the middle with an eye towards the big picture can often lead to negotiations that resolve these distractions.

Source: Las Vegas Review Journal, “Talks between major shareholders in Affinity Gaming may resolve board infighting,” Howard Stutz, April 25, 2014

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