Some of the issues that can arise include:- 

  • Breaches of the Shareholder’s Agreement or the Articles of Association
  • Conflicts of interest
  • The unfair prejudice of minority shareholders by a controlling majority
  • Policies for the distribution of dividends
  • Lack of notification of shareholders meetings or exclusion from meetings
  • Diversion of business by directors to other entities within their control
  • Directors breaching of their duties

Such a dispute has the potential to be protracted and costly. In addition, there can be an impact upon the day to day business of the company and it is clearly in everyone’s interests for the matter to be resolved as quickly as possible. Where a dispute arises, we shall advise on the most cost effective route and seek to ensure matters can be settled without court intervention where possible.

It is also important to obtain advice as to how the legal costs for a dispute involving a shareholder are to be funded. These costs will often had to be paid for by the individuals involved not through the company.

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