Find a solution with shareholder dispute solicitors
Get professional legal advice through your dispute, and work towards the best possible outcome. Our solicitors will do everything in our power to put this disagreement behind you.
Get professional legal advice through your dispute, and work towards the best possible outcome. Our solicitors will do everything in our power to put this disagreement behind you.
It’s tough enough dealing with the everyday of business life without all the complications of a shareholder dispute. These can wind up being emotionally – and financially – draining, which is why it’s best to get support as soon as possible.
Optimal Solicitors will be your sounding board, offering tailored legal advice so you can determine the right way forward. We’ll handle things quickly and effectively, meaning you can settle the dispute and move on with your business.
Our team always explains the law the straightforward way, meaning no matter how complex your case, you can understand how we’re working in your interests. With our help, you can begin a better future.
There are many different types of shareholder disagreements. Directors can be involved in them too, often because of strategic and control issues between majority and minority shareholders.
Disputes are best avoided as they can end up being expensive and complex, and will most likely negatively impact the company’s day-to-day operations.
Many disagreements involve minority shareholders. They can sometimes feel that they’re being disregarded or overruled as their share in the company is small. However, it should be noted that minority shareholders actually have many of the same rights as those who own a larger share.
To enforce your rights as a shareholder, you can take a number of actions. For instance, you could:
This is dependent on the unique case in question. All the facts will need to be presented to determine whether it is the company or the fraudulent director who is seen as legally liable – the law is very complicated when it comes to this matter.
Shareholders can potentially bring about a director’s dismissal, though this is a very complex area of law. Those that represent at least 5% of the company’s voting rights can force the board to call a general meeting. This is a lengthy process, and requires a clear agenda and proposed text of resolutions to be passed to dismiss a director. Ordinary resolution passes need greater than 50% of voting shares present at the general meeting.
Shareholder disagreements usually involve:
These disagreements can be prevented if you have the right documentation in place, including incredibly clear employment contracts, articles of association, and a shareholders’ agreement. Depending on your requirements, these can provide minority shareholder protection, make it plain what the company’s aims are, and put in place a process for disputes.
Shareholders’ agreements can be created at any point in the company’s life cycle, although it’s best to draft one sooner to reduce the risk of any future disagreements. They outline the rights and responsibilities of all the shareholders, and should include the following as a minimum:
The possible claims you can make include:
You have rights under the Companies Act, although these are quite limited. What exactly you’re entitled to depends on your shareholding amount:
As these minority shareholder rights are so restricted, it’s best to put in place a shareholders’ agreement to enhance them. There are a variety of clauses that can be included in this contract. One that we recommend is your entitlement to access financial records and documentation. Evidence like this is often key to resolving shareholder disputes.
Other common clauses that minority shareholders opt to put in agreements include:
When it comes to dealing with shareholder disputes, or putting together a shareholders’ agreement, we can’t emphasise enough the importance of getting legal advice. These matters can be extremely complex, so it’s best to put your requirements in the hands of a team with plenty of experience and knowledge in this area of law.
As shareholder dispute solicitors, we do what it takes to resolve disagreements as quickly and amicably as possible, and make sure there’s minimal impact on the business. That means you can trust us to manage your disagreement too.
Just some of the reasons our clients choose us include:
To take action, it’s best to get in touch with our team of shareholder dispute solicitors as soon as possible. We’ll gather all the necessary information, and work with speed to bring about the best outcome for you. You can have complete peace of mind that a resolution will be reached. Plus, if you need help with any other aspect of corporate law, we can support you with that too.
Speak to our shareholder dispute litigators by arranging an initial consultation today. You’ll be able to discover what your legal rights are, and how exactly we can help you.