Shareholder Disputes
Shareholder disputes arise when disagreements occur between shareholders and directors, or other key stakeholders within a company.
They can arise for several reasons. The shareholder agreement may have been breached. Shareholders may feel they have been mistreated. It could be felt that certain shareholder or director has acted improperly or mismanaged the business. There may be a perceived breach of directors’ duties or there could be disagreements over the company’s performance or future.
However they arise, they will almost certainly have a significant effect on the business. There could be a financial impact, reputational damage and operational disruption, all of which could damage the business’ financial performance, market position, investor confidence and employee morale.
This is why it is essential you seek legal advice as soon as a shareholder dispute threatens to develop. Early action can often prevent a long, protracted and expensive legal battle.
This is where our hugely experienced commercial litigation team can help.
What are the options for resolving shareholder disputes?
The best course of action will always depend on the reasons for the dispute and the specific circumstances surrounding it This is another reason why it is essential to act as early as possible. You need to make sure you get your approach absolutely right from the start.
Immediate action should help you reach a faster, more cost-effective and more mutually acceptable resolution, minimising the effects of the dispute on your business’ performance. This action could involve informal negotiations or mediation or arbitration which will involve using an accredited mediator or arbitrator respectively.
If these options fail to help you reach your desired outcome you may have to turn to litigation to pursue the matter in court.
Which types of shareholder disputes can we help you with?
We can help with all types of shareholder disputes. However, the most common disputes we deal with are:
- Breaches of shareholder agreements
- Allegations of mismanagement against directors
- Unfair Prejudice petitions under the UK Companies Act 2006 (Section 994)
- Conflicts of Interest
- Dividend Disputes
- Fraud related disputes
- Buyout Disputes
Why should you talk to us?
As we’ve said, our team is made up of highly experienced litigators. They are not only specialists in corporate and commercial law but also have extensive experience in resolving most types of shareholder dispute.
We also have an accredited commercial mediator on the team and can help you explore alternative dispute resolution methods and, hopefully, help you avoid the time and expense of going to court.
If you think you may be at risk of becoming involved in a shareholder dispute and would like a free initial conversation with one of our dispute resolution specialists contact us online here, or to speak to our team call 0114 266 6660.
