Shareholder disputes Solicitors
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Shareholder disputes
Many businesses fail to outline a clear process of what to do in the event of transferring shares or shareholder disputes.
This can create problems down the line if shareholders and directors should have a disagreement, especially as so many private UK companies’ shareholders will be heavily involved in the management of the company.
Spencer Churchill Solicitors have the knowledge and expertise to strategise the best approach to shareholder disputes, and how to litigate issues that arise from disagreements and claims.
What are shareholder and director disputes?
Shareholder and director disputes occur when shareholders and directors of a business end up at loggerheads over the direction and management of the business.
Disputes usually stem from beliefs that one party isn’t contributing enough to the business, personal issues that damage business relationships or a general conflict of interest.
These disputes can become more serious when the disputers are not aware of their legal rights or understand the best business strategy and practice to implement.
Spencer Churchill Solicitors have a wealth of expertise in business management law and can assist with choosing the best business strategy that aligns with your business goals.
What advice do you give on shareholder and director disputes?
Our specialist team can advise on a variety of shareholder and director dispute issues:
Boardroom disputes advice
If a dispute arises between company directors and this affects the running of the business, then resolving this quickly is vital to the company’s reputation and operations.
Company shareholders and directors can sometimes find themselves unable to settle a dispute and we can provide expert advice on the best way to proceed through negotiations and find a solution that all parties will be on board with.
To find out more information about our advice on boardroom disputes, contact us.
Removing a shareholder
If a disagreement between shareholders should occur, this can lead to consideration over whether to take action to remove a shareholder.
We can advise on appropriate measures to take when removing a shareholder or director from a business, as well as assess articles of association and shareholder agreements.
To find out more information about our advice on removing a shareholder, contact us.
Shareholder agreements advice
Our specialist team have a wealth of experience in preparing and assessing shareholder agreements.
We can make sure that there is supporting documentation that clearly outlines the relationship between shareholders for business stability.
To find out more information about our advice on shareholder agreements, contact us.
Derivative claims advice
Shareholders may make a derivative claim if they wish to challenge directors or third parties on the grounds of negligence or a breach of trust.
Derivative claims are governed by legislation stated in the Companies Act 2006 and we can advise on the procedure of making a derivative claim and what the best course of action to take will be.
To find out more information about our derivative claims advice, contact us.
Directors fiduciary duty breach advice
Company directors are in a position of power and are responsible for the overall direction and management of the company.
Under the Companies Act 2006, there are many common law duties that apply to directors such as a duty to have independent judgement and exercise diligence and care.
If a director is in breach of their duty towards the business, action can be taken against them.
We offer specialist advice on taking action against directors who do not do their fiduciary duty.
To find out more information about our advice on director duty breaches, contact us.
Partnership disputes
A partnership dispute can create big problems for a company and threaten not only the reputation of the business but also jeopardise the careers of those involved.
Managing a partnership dispute effectively and ensuring that it does not escalate is essential to preventing damage to the business.
We offer specialist advice to put our clients in the best position for negotiation or litigation when it comes to partnership disputes.
To find out more information about our advice on partnership disputes, contact us.
Why choose Spencer Churchill for advice on shareholder disputes?
At Spencer Churchill Solicitors, we strive to protect business partnerships and provide practical, legal solutions to disputes that have your business interests at heart.
We take a pragmatic approach to shareholder and director disputes in line with official legislation to put our clients in the best position they can be in regardless of circumstances.
Shareholder and director disputes FAQs
How do you resolve a shareholder dispute?
Shareholder disputes are very common in business and often this is a result of a breakdown in communication and conflict of interests.
At Spencer and Churchill Solicitors, we pride ourselves on providing specialist advice on shareholder disputes and effective solutions.
Can a shareholder remove a director?
A shareholder cannot directly dismiss a director but if a shareholder has over 5% of the company’s voting rights, then they can arrange a meeting to discuss the potential dismissal of the director.
What is the best way to resolve a shareholder dispute?
There are a number of different ways to resolve a shareholder dispute and first and foremost, negotiation should be the tactic used to hopefully reach a compromise.
Commercial litigation will be considered as the option if this doesn’t work.
What fiduciary duties does a director have?
A director has fiduciary duties that should be a reflection of the trust and dedication to the company and its members. A director is expected to act in the best interests of the business and in an ethical way.
What is a derivative action?
A derivative action gives the permission of a minority shareholder to start proceedings on the company’s behalf in order to take action against company directors who they believe are in breach of their duty.