Shareholder disputes are common in businesses and in some cases, shareholders can become embroiled in serious and protracted disputes, which not only affect them personally, but can also have a detrimental effect on the business. These can include disagreements over control and management of the business, the distribution of business monies, or breaches of shareholder agreements.
Our expert solicitors are highly experienced in acting for shareholders in commercial disputes and have acted on a variety of complex and high profile cases. At Eldwick Law, we are proud of the open and honest advice we provide to shareholders with the intention of resolving disputes as quickly as possible, in order to limit financial and reputational damage to the business involved. Whether you are a majority or a minority shareholder, or even an interested party, you should be made aware of your legal rights so that you can properly assess the strengths and weaknesses of your position.
Shareholder disputes can be resolved in a variety of ways, depending on the nature of the dispute and there are many options are available to shareholders. We aim to avoid litigation, and if a mediated solution can be reached, potential actions could include buying out of the continuing shareholders, the purchasing of own shares by the company, demergers where the company is transferred to the shareholders or purchasing a new holding company which could include a share exchange for shareholders.
Often, litigation can achieve the best outcome and possible actions can include:
- Unfair prejudice petitions, where the shareholder that has suffered the unfair prejudice is bought out by the other shareholders;
- Derivative action, where the director(s) are in breach of his/her duties;
- Winding up of the company.
If you find yourself in a position where you have been excluded from the day-to-day management of the business, or you’re not receiving the dividends or profit that you are entitled to, or you feel that your fellow shareholders are operating against your interests, then you are entitled to redress under the Companies Act 2006.
We can help with your disputes and act for minority and 50/50 shareholders in a range of disputes, including:
- ‘Unfair Prejudice’ proceedings;
- Breach of directors’ duties;
- Underperforming directors or shareholders;
- Section 944 petitions;
- Salary disputes;
- Derivative actions.
In the news: Eldwick Law successfully acted for a minority shareholder in the high profile case against Gate Ventures PLC.
If you have been involved in a shareholder dispute, contact our expert solicitors for advice.