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Shareholders, Partnership, and Directors Dispute Solicitors

Lawyers for Shareholders, Partnership, and Directors Disputes

Many businesses rely on the relationships of their leaders.

Be they shareholders, partners, directors, or owners, a solid foundation is key to the success of the business.

Sadly, like any relationship, they are prone to conflict and breakdown, and when a dispute arises between shareholders, partners, and directors it can be extremely detrimental to the business.

It is important to both the company and the individuals involved that any dispute is resolved effectively and efficiently.

Our team of shareholder dispute solicitors understands the potentially emotional nature of these disputes and the damage they can cause.

We therefore focus on providing robust and strategic advice to bring about the most amicable result for you, while at the same time keeping an eye on damage limitation.

When Will You Need Advice in Shareholders, Partnerships, and Directors Disputes?

Shareholders, partnership, and directors disputes generally occur when these parties disagree over the direction and management of the business.

Conflicts can often arise over:

  • Company policies
  • General conflicts of interest
  • Allegations of misconduct and breach of duties

There may also be feelings that there is an imbalance of power and bargaining position or remuneration disparity.

These all usually boil down to miscommunication or relationship breakdown for one reason or another, but these disputes can paralyse a business.

That’s why it is absolutely vital that disputes between shareholders can be resolved as soon as possible.

At Beyond Corporate, we believe the key to this is understanding the core reasons behind your dispute so that we can advise you about your best course of action.

Shareholder Disputes

Shareholders have statutory rights and protections, including from the conduct of other Shareholders and Directors.

The majority of these are contained within the Companies Act 2006.

The company’s Articles of Association and Shareholders Agreement (if they exist) will also outline the rights and protections of the Shareholders and are often the first place to look to see if there have been any breaches.

As well as disagreements over the strategy and the direction of the business, common shareholder disputes that occur are related to the following:

  • Unfair prejudice claims (where the business of the company is being conducted in a way that is prejudicial to a minority shareholder)
  • Attempts to dilute share value
  • Understated or failure to pay dividends
  • Asset removal

Our team regularly advises both minority and majority shareholders on the above issues, including when a minority shareholder believes that a majority shareholder is not acting in the best interests of the company (which is usually at the core of most shareholder disputes).

It is paramount that the rights and protections of the shareholders are understood in order to bring about an effective resolution.

Partnership Disputes

More often than not, a partnership is typically operated under a written agreement or partnership deed, which usually has a prescribed mechanism for disputes or how the partnership is to be brought to an end.

Less common are ‘partnerships at will’ which have default partnership agreements implied by the Partnership Act 1890.

As well as disagreements over the strategy and direction of the business common partnership disputes that occur are related to the following:

  • Recruitment to or downsizing of the partnership
  • Retirement of a partner
  • Poor performance or conduct of a partner
  • Expelling a partner
  • Winding up or dissolution of the partnership
  • Breach of fiduciary duty

We understand the consequences of a partnership dispute escalating and the potential for damage to the business.

Therefore, when advising both remaining and departing partners we do so strategically with the best interests of the organisation in mind.

Directors’ Disputes

As with shareholder disputes, the Companies Act 2006 is at the forefront of directors’ disputes and contains duties that apply to directors.

Articles of Association or Shareholders Agreements will often set out how important decisions must be made if there is a dispute between directors.

On top of disagreements over the strategy and the direction of the business common director disputes that occur are related to the following:

  • Directors breaching their fiduciary duties
  • Excessive pay for directors
  • Unlawful removal of another director
  • Directors setting up competing businesses
  • Poor performance or incompetence of a director
  • Director loan accounts abuse
  • Directors ignoring pre-emption rights

Directors’ disputes can often lead to deadlock and can be particularly damaging to a business.

Given that the penalties for breach of directors’ duties can be extreme and can even lead to criminal liability, it is vitally important that legal advice is sought if you are considering removing a director or are a director threatened with removal.

Our team is experienced in advising directors and businesses involved in directors’ disputes, so we know what it takes to deal with these effectively.

Why Choose Beyond for Your Disputes?

The team at Beyond Corporate has extensive experience acting for shareholders, directors, companies, and partners in a wide range of disputes, including those outlined above.

We have many years of practice in this area and have consistently achieved optimal outcomes for our clients.

We are expert shareholder dispute solicitors and have extensive experience in bringing and defending actions related to shareholders, partnership, and director disputes as well as resolving these via alternative dispute resolution.

We understand both the financial and emotional cost a shareholder, partnership, or director dispute can have on everyone involved which is why we always take a commercial, as well as legal, approach to dispute resolution.

Our team also has the benefit of being able to draw on the range of expertise across the firm, to advise on issues relating to:

Key to shareholder, partnership, and director disputes is having well-drafted shareholder agreements, articles of association, and partnership agreements.

This can minimise risk and provide clarity should a dispute arise.

Our team can draft contracts for your business to manage any future disputes in the best interests of the business.

Get in Touch with Our Shareholder, Partnership and Directors Dispute Lawyers Today

If you’re looking for a litigation lawyer, you’ve come to the right place. Our team of experts has numerous years of experience in shareholder, partnership and director disputes so you can trust that with us, you’re in the best hands. 

To speak with one of our lawyers, call us on 0333 202 6433 or send us an email at [email protected].

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