Business

Shareholder Disputes

BUSINESS OBJECTIVES ACHIEVED

Shareholder Disputes

When an individual or party invests in a business, it can prove very profitable for everyone involved as it helps the business to expand and grow in a way that it may not have been able to before. However, a shareholder may have certain expectations of what it wants the business to achieve and the terms with which they are investing. If a business fails to meet these expectations it can cause disputes to arise, which may mean you need to seek the help of a solicitor who specialises in this area of law.

At Forbes Solicitors, our shareholder disputes team are experts in helping clients to resolve any ongoing or active disagreements. They'll aim to understand your objectives and give you a bespoke service that you can rely on.

What is shareholder dispute resolution?

Investing in a business or organisation can be a fantastic opportunity, turning out to be a profitable decision for everyone involved. However, in some cases a business may fail to meet the expectation of the shareholder, breach an agreement, or feel as though they are not being kept informed regarding affairs of the business.

This can mean that disputes arise between shareholder and business owner/other shareholders, which then must be resolved with methods such as mediation, arbitration, or negotiation. It's important that these disputes are resolved quickly to minimise damage to the business and shareholders.

What are causes of shareholder disputes?

There are a variety of reasons why a dispute may occur between a shareholder and a business owner/other shareholder, which may then require the help of a trained mediator or negotiator to help resolve a dispute. Some reasons why a dispute may arise include:

Conflict of Interest
Poor Communication
Lack of Business Information Access
Breach of Duties
Lack of Financial Information Access
Shareholder Hierarchy

How are shareholder disputes settled?

There are a variety of different ways that a dispute with a shareholder can be solved to reach the best outcome for everyone involved. This may mean that the original Shareholder Agreement needs to be reviewed, so that the rights of the shareholder can be re-established. If this is unable to clear any confusion or misunderstanding, there are other options to help settle a dispute, including:

Removal of one or more shareholders
Holding a shareholder's meeting
Hiring an advisor
Traditional methods of dispute resolution (i.e., mediation, arbitration, negotiation etc.)

Why choose our shareholder dispute solicitors?

Our shareholder dispute solicitors are experienced in helping business owners and shareholders find resolutions for any active disagreements, so that disputes can be solved efficiently and minimal damage to the business is caused. At Forbes Solicitors, we can provide you with high quality legal professionals who specialise in shareholder disputes and are trained in methods of conflict resolution. Get in touch with our expert team to find out more.