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Shareholder Agreements

Needing the right legal advice when it comes to Shareholder Disputes?

Disagreements with shareholders can really destroy a business. Much like any relationship, they can turn sour at any point.

Sadly, there are many reasons disputes can occur:

  • Shareholders not putting as much time and effort into the business as the others.
  • Shareholders have different views on the direction of the company and cannot agree.
  • Disagreement over the management of the company, one of the parties may refuse to work with the other.
  • Personal issues arising between shareholders.
  • Payment issues (i.e. one party receiving less than the other or one party dissolving the value of their shareholding).

These issues commonly happen in small and medium-sized businesses as they grow but also common in larger set ups too.

Talk to our team

Frequently Asked Questions:

Shareholder meetings allow parties to discuss disagreements and try to agree on a solution.

Where this is not possible, a solicitor will be able to work with you to set out possible options. 

Alternative dispute resolution can also be considered, such as mediation. 

This will depend on the circumstances. If the issue is relatively minor, the first thing to do, would be to give the board and/or relevant director an opportunity to fix the problem.

For more serious matters you should make an objection and ensure that there is written evidence of your objections and take legal advice. 

Every situation is different but in this case, mediation can be especially effective for a family owned business.

Mediation uses a third-party to help the parties resolve their differences outside of court. This process can help protect important personal relationships while resolving the business disagreement. Contact us to discuss mediation.

A strong partnership agreement and shareholder agreement will be more than beneficial. Having detailed conversations about expectations at the outset can help prevent misunderstandings and disputes down the road. 

Disputes between shareholders arise in both stable and challenging times, however the cost-of-living crisis has brought extra hardship and financial strain on all business types and inevitably pressure can build. 

If a dispute is on the horizon, seek advice early from our specialist team.

Our experienced team have a track record of dealing with shareholder disputes. We take time to understand the background to the dispute so that we can tailor our advice to your circumstances.  We can then advise clearly as how best to proceed.

We aim to resolve disputes as swiftly and effectively as possible in order to minimise any impact on your business.

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