Are you or your business currently experiencing shareholder disputes? Do you need practical, pragmatic and reliable legal advice? Then Nash & Co Solicitors can help.
“Shareholder disputes can be difficult and complex. Especially where there is no shareholder agreement, and animosity exists between the various parties. Clients are always encouraged to take early advice to minimise the likely effect that such disruption has on you and your business.”
Jamie Carr, Solicitor
Shareholder dispute Solicitors
Disputes between business partners are sometimes unavoidable. This can, unfortunately, cause a great deal of stress and ill-feeling between those involved. If there isn’t a robust Shareholders Agreement in place beforehand, this can complicate matters further. In our experience, it’s best to resolve shareholder disputes sensibly and swiftly. This will increase the chances of achieving the best possible commercial outcome.
Commercial disputes can occur for many reasons. For example, the price payable for shares or even a breach of shareholder agreements. Dissatisfaction with the direction of the business or a violation of the rights of minority shareholders can also invite dispute.
If shareholder disputes arise, there are several options that you can pursue. These include:
- Dividing the business: This option enables shareholders to go their separate ways by splitting up the company or shuffling stakeholders.
- Variation of rights: This option means a shareholder can retain income and capital rights, whilst relinquishing their management control.
- Buying back shares: This option means that if the company has enough surplus funds to hand, they can buy back shares. The company can then redistribute the stakes to its remaining shareholders.
- Deferred consideration: This option allows for the consideration payable for shares to be deferred – in the event cash flow is an issue.
- Court proceedings: If we cannot reach a satisfactory resolution, you can take court action.
Furthermore, minority shareholders can seek relief from the court when they feel the majority shareholders unfairly prejudice their rights. If the court finds the minority shareholders treated in an unfairly prejudicial manner, it will typically order that the minority shareholding be purchased fairly. As a result, often resolution of shareholder disputes generally is in both parties’ best interests.
Why choose Nash & Co Solicitors?
Our team of commercial dispute solicitors and business lawyers have significant experience in advising both majority and minority shareholders. Advising both parties is often necessary when minority shareholders feel the majority owners have prejudiced their rights. For example, this can include incidents where the majority owners’ decisions diminish shareholders’ value, or otherwise unfairly prejudices minority shareholders.
With decades of combined legal experience, we have the skills and knowledge to advise companies and individuals (minority or majority shareholders) in the event of shareholder disputes. Our experience means we’re well-versed in dealing with shareholders’ competing interests and their often-fractious relationships with each other. We will analyse the situation, create a strategy and then implement it. We do this by working with you and the other parties to achieve a sensible and practical resolution. Many of our cases settle during the solution-seeking process. However, if court action is needed, we have the skills required to prosecute and defend your case.
If you need advice on dealing with shareholder disputes, please contact Jamie Carr from our Commercial Disputes team. You can reach him by phone on 01752 827014 for a discrete initial chat. You can also email Jamie at [email protected] or request a call back by filling out our contact form.