Shareholder disputes can be linked to boardroom disputes. They can be disruptive to the company because they divert attention from the running of the business to the agendas of the individuals involved in the disputes.
Disputes are generally based upon disagreements as to the direction the company is to take and/or bad relations with shareholders and/or directors. The latter can include, for example, a conflict of interest because a director or shareholder may have interests in other businesses and some of those could well be a competing business.
Other disputes could relate to the terms of directors’ service contracts, legal obligations to shareholders and the rights of such shareholders. Disputes can also arise with regard to how the money of the company is spent and directors’ remuneration may well lead to lack of sufficient resources to declare appropriate share dividends.
We have experience in acting for directors and shareholders in such disputes and if necessary we can negotiate the sale of shares and/or exit from a company by liaising closely with our corporate and commercial department.
John Kenneally - Partner