As a COO, you keep the business moving while owners fight over control. That tension can pull you into meetings, emails and urgent requests. Still, your job stays the same: protect operations, people and cash flow. With the right steps, you can steady the company and reduce legal risk.
Keep your fiduciary focus on the company’s best interests
When shareholders clash, each side may push you to “take a side.” Instead, anchor decisions in the company’s interests and your duties to the entity. Stick to approved budgets, follow internal controls and avoid special favors. If a request feels personal or political, pause and route it through counsel and the board process. Consistent, business-first choices help you defend your actions later.
Build a clean record that matches California corporate rules
Good documentation protects you when stories change. In California, corporations must maintain key records, such as bylaws, minutes and shareholder lists. LLCs must keep operating agreements and member records. Keep minutes for board and shareholder meetings, track written consents and store notices and agendas. Use one source of truth for versions and approvals. When you treat records like operational assets, you reduce disputes about what happened.
Set communication rules that reduce heat and protect the team
Shareholder disputes can flood your inbox and distract leaders. Set a clear protocol so you control timing, tone and recipients.
- Route shareholder requests through one executive point person
- Confirm requests in writing and log deadlines and responses
- Avoid side texts and hallway promises with either faction
- Share updates through formal channels, not group chats
- Keep managers focused on performance goals and customer commitments
These steps lower emotion and create a reliable trail.
Protect sensitive information without blocking lawful access
You must guard trade secrets, pricing, customer lists and employee data. At the same time, California law can require access to certain corporate books and records. Work with counsel to separate what you must disclose from what you should restrict. Use role-based access, limit downloads and require secure portals for production. If you suspect misuse, document it and act fast.
A steady plan for stability during uncertainty
You protect the company by staying neutral, keeping records tight and controlling information flow. Partner with counsel early, then share your org chart, cap table, key contracts, recent minutes and any disputed communications. Ask for a response plan and a meeting playbook. With that roadmap, you can limit disruption while the legal process runs its course.