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Directors Disputes

Directors play a pivotal role in helping companies to achieve their strategic objectives and to operate effectively and efficiently. As such, it is important that they perform their role well an that they command the trust and respect of those they have been appointed to lead. It is also important that conduct themselves in a way that is beyond reproach and that where mistakes are made these are owed up to quickly.

Where the behaviour of a director falls below expected standards, there is potential for a dispute to arise — whether it is with fellow directors, shareholders, corporate lenders, secured creditors or employees. There is also potential for conflict where a director chooses to leave unexpectedly or an insolvency practitioner is appointed.

Whatever the circumstances, it is important that where a dispute occurs it is tackled head on and that decisive action is taken to achieve a prompt resolution on sensible and commercially acceptable terms.

This is something that the corporate solutions lawyers at IMD Solicitors can help you to do, whether your involvement in the dispute is as the director whose actions have come under scrutiny, a representative of the company’s board or someone else.

We have broad experience in a range of director-related matters and particular expertise in the resolution of disputes between directors and shareholders over poorly made or executed business decisions.

How we can help

Working alongside our dispute resolution colleagues, we can help deal with:

  • disputes where a director is alleged to have breached their statutory duties under the Companies Act 2006;
  • disputes where a director is alleged to have exceeded their powers, or failed to follow internal rules, as set out in the company’s articles of association and other constitutional documents;
  • disputes where a director is alleged to have failed to give effect to the statutory or contractual rights of shareholders;
  • disputes where a director is alleged to have behaved inappropriately, such that the company feels entitled to terminate their service contract;
  • disputes where a director has been removed from their position and is claiming unfair dismissal or some other breach of employment laws;
  • disputes where a director has left the company and is allegedly acting in breach of a restrictive covenant;
  • disputes where a director is alleged to have contributed to a company’s collapse into insolvency, including where they are accused of wrongful trading or of sanctioning a transaction at an undervalue or one that amounts to a preference; and
  • disputes with an insolvency practitioner who is trying to force the director to make a personal contribution to company funds or to have them made subject to a director’s disqualification order.

Marcin Durlak

Managing Partner View profile
Key contact

Olexandr Kyrychenko

Partner View profile

Zoya Burbeza

Senior Consultant Solicitor View profile

Do you have a legal issue you need resolved?

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Why choose IMD Solicitors?

Because our lawyer have experience of acting for a range of people caught up a directors’ disputes, they have the ability to look at matters objectively and to com up with proposals for settlement that they know are likely to be acceptable. This means that they can usually help you to achieve a resolution more quickly and economically than might otherwise have been the case.

Our approach is to start off by trying to address matters through informal negotiation and where that is unsuccessful to then move on a recognised dispute resolution procedure, whether that be mediation, expert determination or court proceedings.

Where an injunction is required to protect your position, we can help you obtain one and equally we can apply to have an injunction against you discharged where possible.

The good news is that, for company clients, once your dispute has been resolved we can also help to address any other legal needs you may have, be it in connection with a corporate or company restructure, a merger or acquisition or legal due diligence requirements in the run up to a public offering on the London Stock Exchange.We can even help with the resolution of future disagreements, including those arising out of a contract dispute, a contested debt recovery matter, a defamation and media issue, an intellectual property argument, an insolvency issue or a shareholder dispute.


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