Director & Shareholder Dispute Solicitors in Nottingham
Shareholder and partnership disputes can be complex issues which can take a huge personal and financial toll.
At Actons, we advise directors and shareholders on their rights and about the resolution of disputes with their colleagues and co-shareholders.
In owner-managed businesses, disputes between shareholders or directors may also involve disputes between friends or family members. It’s important to retain a sense of perspective and to ensure a cost-efficient approach. It’s also important to ensure that the value in your business is preserved rather than destroyed by the dispute.
We can also put you in touch with other professionals to help you ensure that all loose ends are tied up when a director or shareholder leaves the business.
How Our Solicitors Can Help
We can help directors and shareholders in all types of disputes, including the following areas:
- Shareholder Claims/Disputes
- Claims of Unfair Prejudice
- Breach of Shareholder Agreements
- Breach of Director’s Duties
- Derivative Claims
Why Choose Actons Director & Shareholder Dispute Solicitors
Director and shareholder disputes can be hugely damaging to any business and carry financial and reputational risks. At Actons, our team of down-to-earth disputes lawyers have helped resolve many sensitive and business-critical issues for a range of businesses. Our expert team will work in partnership with you, providing clear, commercial and cost-effective advice whilst minimising any adverse impact on your business.
Whether you’re looking for guidance on your legal rights or support as part of a dispute resolution process, Actons will have you covered.
We Can Help You With:
- Disagreements over the control and management of the company
- Disagreements over the direction of a company
- Breach of duties
- Minority shareholder disputes
- 50/50 shareholder disputes
- Breach of the Shareholder Agreement
- Shareholders fall out
- Misuse or misappropriation of company assets
- Derivative actions
- Partnership Agreement disputes
- Partnership Act 1890
Recent Work Highlights:
- We helped a client with a complex shareholder dispute. Our client was a significant investor in the company’s business and the dispute involved a comprehensive Shareholders’ Agreement. The matter was referred for expert determination over several “deadlock” matters which resulted in a favourable outcome for the client. The issue was resolved generally at a mediation for a substantial sum.
- We advised and acted on behalf of our clients in a shareholders dispute within a family business. The case was complex as ultimately it related to two different companies as well as the inter-play with a commercial lease which was key to the valuation of the business. The main issues related to dividend payments to shareholders and other remuneration. Unfair Prejudice petition proceedings were issued but the dispute was settled at a virtual mediation for a significant sum.
- We helped resolve a dispute between a co-director and co-shareholder in a company. The dispute centred around a purported agreement on the transfer of shares and resignation of directorship. The dispute was settled pre-issue at a mediation.
But Don’t Just Take Our Word For It:
“Actons provided an excellent service and advice to me.”
“The team was very commercial in their appraisal as to what would be the best outcome in a messy and complicated situation.”
“The team provided a considered and balanced view without which I am certain we would not have managed to achieve a constructive outcome.”
When are shareholder disputes likely to occur?
Shareholder disputes may arise in several ways. Common reasons are usually around disagreements on the direction of the company; lack of performance by certain directors; level of remuneration for directors; lack of dividend payments; or failure to comply with directors’ duties.
How are shareholder disputes resolved?
How quickly a dispute can be resolved will depend on the circumstances. Generally, it can take between 18 - 24 months from a claim being issued at court to reach trial. However, disputes can be resolved much sooner than that, with mechanisms such as Without Prejudice correspondence and mediations being prudent ways to resolve disputes sooner.
What legal rights do shareholders have?
Shareholders are generally entitled to: vote and attend general meetings; receive dividends; inspect company information and the right to sue for wrongful acts. However, shareholders’ rights will depend on the rights or limitations attached to their shares under the company’s articles. There may also be a shareholders agreement in place which can be relevant.
Can shareholders overrule directors?
As a general rule directors are responsible for the day-to-day conduct and decision-making of the company. How a director is appointed or removed will depend upon the company’s articles of association, but it is likely that shareholders will be able to remove a director by way of ordinary resolution (with approval of more than 50% of the shareholding). Shareholders can also bring a derivative claim in the name of the company against directors, if the directors breach their duties and cause a loss to the company.
The Legal 500 2023: Commercial Litigation – Nottingham & Derby"Actons’ client base is primarily made up of national SMEs and includes a number of international companies. ‘Solid, sensible and reliable’ Gordan Monaghan, who was promoted to director in April 2021 and heads up the practice since September 2022, has a focus on shareholder disputes and gives clients a ‘reassuring feeling that they are being well looked after’."
The Legal 500 2021: Commercial Litigation – Nottingham & Derby
"Actons' ‘responsive’ department provides ‘good commercial knowledge’ and handles a broad spread of commercial litigation for a clientele that includes international companies as well as SMEs and individuals."The Legal 500 2018 (Commercial Litigation (Notts & Derby))
"Actons’ ‘very professional and knowledgeable’ team"The Legal 500
"The 'highly professional' seven-fee-earner team at Actons handles a broad spectrum of cases, including matters with multi-jurisdictional elements."The Legal 500