If a dispute arises between shareholders, the first port of call is usually to consider the Company’s Articles of Association. We can advise on your rights, and in appropriate cases advise on an application to Court under The Companies Act 2006 for an order by the court on the ground that the company’s affairs are being or have been conducted in a manner which is unfairly prejudicial to the interests of its shareholders.
Precisely what behaviour is “unfairly prejudicial” depends on the circumstances of each case, but in very general terms it may mean that minority shareholders can apply to the court if the majority shareholders run the Company in a manner that damages the minority shareholder’s position, (which usually means the worth of their shareholding), for instance by misusing company assets.
Disputes between partners can quickly become personal. We will advise you on how to avoid the financial costs that can arise and how to effectively resolve your dispute. Sometimes dissolution of the partnership is the only option, or to claim damages, and if so we will act for you decisively and swiftly. We will go through all of the options and ensure you receive practical advice.
We will listen to you and move forward with a sensitive strategy to reach a conclusion as quickly and cost effectively as possible.
Learn more about the representation we offer by contacting us online or ring 01664 431 300 to arrange your initial consultation.
Mr N of Market Harborough instructed us following the breakdown of his business partnership. Our advice was that the dispute should be resolved by way of alternative dispute resolution, as a lengthy expensive dispute might mean that the business could become unviable. Rather than by way of court proceedings, a meeting was arranged very quickly with lawyers in attendance at which all of the outstanding issues were resolved and our client was then able to continue in the business.
We have dealt with numerous successful claims and defences against claims relating to partnership and shareholder disputes. These include claims by minority shareholders of prejudice, straightforward partnership disputes at the time of dissolution and breakup of the partnership, and quasi-partnership disputes between shareholders in small companies.
We represented Mr P in a claim against a Company in which he held a minority shareholding, the claim was eventually compromised by purchased by the Company of our client's shareholding.
We represented Mr W in defence of the claim being pursued against him in relation to personal guarantees he had given in relation to a company in which he had an investment. Previous solicitors had advised our client that he should concede the matter, we advised him that he had strong technical reasons to defend the full claim and eventually it was settled for 20% of the amount claimed.