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Shareholder Disputes

Shareholder Disputes

Shareholder disputes can arise in a range of situations and have the potential to get quickly out of hand, particularly in smaller owned-managed businesses. A calm and reasoned approach is crucial, particularly where tensions are running high and threats are being made which could have catastrophic consequences for everyone.

How we can help

Our team of dispute resolution lawyers are skilled negotiators who regularly work alongside shareholders and directors to find commercially sensible solutions to a range of problems, from alleged misconduct by board members to claims of unfair prejudice made by members with a minority shareholding.

We are particularly adept at addressing disputes where the only workable outcome is for an aggrieved shareholder to leave and in this scenario we can help by arranging a buyback of shares (along with any required valuation) or a corporate restructure to secure the transfer of ownership rights to part of the companys business instead.

For disputes that cannot be resolved through negotiation we can help to support you though mediation or arbitration, to access expert determination services or to begin court proceedings.

Shareholder rights

Shareholders have a range of rights when the feel aggrieved at the way they being treated or at how the company they have chosen to invest in is being run. We provide advice on all of these and specifically on rights to:

  • inspect company records and to require a general meeting to be called to air shareholder grievances; 
  • pass a resolution to sack the current board of directors where the majority of shareholders are in favour of this;
  • take action to restrain the directors from completing transactions outside of their powers, via an injunction if necessary;
  • ask the court“s permission to bring a derivative action against a director guilty of wrongdoing where the board has refused to act;
  • make an application under insolvency rules to have the company wound up where relations between members and directors have irretrievable broken down; and
  • bring an unfair prejudice claim where the affairs of the company are being conducted in a way that is unfairly prejudicial to all or some of its members.

Why choose IMD Solicitors?

Our dispute resolution solicitors are experienced in resolving a wide range of shareholder disputes involving both UK-based companies and international organisations with offshore operations and complex cross-border structures.

We act for shareholders, investors and directors in equal measure and pride ourselves on being able to give commercially sensible advice which takes account of any competing interests that may be at play.

We will always strive to resolve disputes amicably where possible or to utilise alternative dispute resolution methods in preference to court proceedings. However, where litigation cannot be avoided or is needed to protect your interests then we will proactively fight your corner.

We can also help you with director disputes and wider corporate and commercial matters, including corporate governance and compliance and the drafting of commercial contracts.

Key contacts

For more information, please contact Olexandr Kyrychenko on 0330 159 5968. Alternatively you can make an appointment to see a member of our team at one of our offices in London, Birmingham or Manchester.

(0044) 330 159 5968
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