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Director and Shareholder Disputes

Unfortunately, disputes between directors and shareholders are part and parcel of many businesses, particularly where the directors and shareholders are the same people.

Disputes between directors and shareholders commonly arise where one party alleges another is performing poorly, has breached their duties as a director or where a minority shareholder claims the Company is being run in a manner which is unfairly prejudicial to all or some of its shareholders.

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Director and shareholder disputes are often very complex and technical affairs, not least because the those involved may be directors, shareholders and/or employees, which each status bringing with it different legal obligations and rights. More often than not, where the relationship between the parties has broken down, all three positions have to be terminated. It remains undesirable for a former director to remain in the Company as a shareholder, particularly where their contribution is much more limited following withdrawal of their day to day involvement with the Company.

These sorts of disputes are very often won or lost by virtue of careful planning and the implementation of the right tactics at the right time. Therefore, obtaining expert legal advice at the very outset is of the utmost importance.

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Here at Attwells, we have many years’ experience of acting for shareholders and directors in boardroom disputes. We regularly achieve cost effective resolutions for our clients, minimising disruption to the business at the same time.

An example of our previous work in this area includes:

  • Negotiating a share sale for our client for £350,000 – our client, a former director of a leading internet service provider fell out with the board of the Company and his engagement as a consultant was terminated with immediate effect. Initially, our client was offered £100,000 in return for sale of his shares. Following our instruction, we successfully negotiated the sale of the same shares for £350,000, concluding the sale soon thereafter.

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Our Fees

We offer genuine value for money to our clients, allowing clients the option of either agreeing with us fixed fees for each stage of your matter in advance, providing you with complete transparency and control over costs, or the option of hourly rates, dependant on the seniority of the fee earner undertaking the work on your behalf. We provide ‘costs ceiling’ arrangements and monthly billing for all our hourly rate work, allowing you to keep a regular handle on costs. We will advise you of the fee rates applicable to your matter at the very outset.  

Whatever the issue, Attwells are on hand to help you get the best possible outcome.

To find out more, call us on 01206 766333 or email us.

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