Director Dispute Solicitors

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Director Dispute Solicitors
Director disputes can derail growth, fracture partnerships, and attract legal and regulatory scrutiny. But at Summit Law, our experienced litigation solicitors help directors and shareholders across the UK navigate and resolve disputes quickly, strategically, and with minimal disruption to the business.
When tensions escalate, we’re here to help.For your free director dispute consultation, simply call our team today on 020 7467 3980 or complete the enquiry form on this page.
What is a director dispute?
A director dispute arises when the working relationship between a company’s leadership breaks down. These disputes often stem from differing visions for the business, misaligned priorities, or concerns around governance and conduct. This might involve:
- Company disputes between directors
- Disputes between a director and the company’s shareholders.
While disagreements are a natural part of business, when they escalate into disputes, they can have serious consequences for the stability and performance of the company.
Common types of director disputes
We help clients with all types of director disputes – from straightforward disagreements to complex, high-stakes litigation. Our role is to provide clear, strategic legal advice that protects your interests and helps you achieve a fair resolution.
Here are some of the most common types of director disputes we advise on:
Breach of fiduciary duties
Directors must act in the company’s best interests, avoid conflicts of interest, and exercise reasonable care, skill, and diligence. Whether justified or not, allegations of a breach of these duties can result in significant legal consequences. We support clients through internal investigations, disciplinary processes, and litigation where required.
Conflict of interest allegations
Disputes may arise when a director is perceived to be placing personal interests above the company’s or engaging in activities that present a potential conflict. We advise on conflict management, disclosure obligations, and defending or bringing claims relating to breaches of trust and confidence.
Disputes over dividends and money
Disagreements may arise over the distribution of dividends or other financial matters, especially when there are conflicting views on the company’s performance, profitability, or future strategy. Disputes can also involve concerns about the mismanagement or improper distribution of funds.
We provide clear advice to directors, shareholders, and other stakeholders on their rights and obligations when it comes to dividend payments and the allocation of profits.
Allegations of mismanagement or misconduct
Accusations of mismanagement, abuse of authority, or unethical conduct can lead to serious reputational damage and legal exposure. These allegations are sometimes linked to a company’s financial distress or even insolvency, where directors can face personal liability. We act for stakeholders on both sides of such disputes, ensuring processes are followed lawfully and fairly.
Appointment of directors
Conflicts may stem from the appointment process itself (e.g. breaches of the company’s articles of association or shareholders’ agreements), or from concerns about a nominee’s independence, qualifications, or intentions. We provide strategic legal advice on contested appointments, voting rights, and remedies where appointments have been made improperly or without consent.
Removal or resignation of a director
Disputes often emerge around the departure of a director – particularly where there is disagreement about the reasons for removal, severance arrangements, or ongoing rights as a shareholder. We advise on lawful director removal procedures and protect against unfair or unlawful termination.
Director and shareholder disagreements
When directors also hold shares in the business, disputes can quickly escalate into legal conflicts with long-term consequences. We can help with:
- Derivative claims
- Unfair prejudice petitions
- Breaches of shareholders’ agreements.
Our solicitors will assess your position, explain your legal remedies, and help you take swift action if your rights are being compromised.
Abuse of majority control
In companies where one director or a group of directors holds a majority of voting power, disputes can arise if that control is used to disadvantage minority shareholders or other directors. We advise on minority shareholder protections, company governance obligations, and potential claims for unfair prejudice.
Access to company information
Directors have the right to access certain company information. When access is denied – often in the context of a dispute – it can hinder a director’s ability to fulfil their duties or protect their interests. We advise on enforcing information rights and resolving disclosure disputes quickly.
50/50 director disputes (company disputes between directors)
Deadlock situations are particularly challenging in companies with two equal directors. Without an agreement, the business can grind to a halt – affecting operations, cash flow, and staff morale.
We help clients navigate these complex 50/50 director disputes with strategic advice, negotiation, and where necessary, court intervention or applications for company restructuring or winding up.
Potential consequences of a director dispute
Tensions at board level can have wide-ranging implications. In the short term, they can lead to deadlock in decision-making, loss of investor confidence, disruption to day-to-day operations, and reputational damage.
Unresolved disputes may escalate into formal legal claims, resulting in financial loss for the business, strained commercial relationships, and even regulatory scrutiny. In some cases, the company’s future may be placed at risk.
But the consequences aren’t purely commercial; they can also be deeply personal. Directors involved in disputes may face:
- Damage to professional reputation within the company and across the wider industry.
- Personal liability for breach of duty, misconduct, or mismanagement.
- Stress and emotional toll, particularly in close or long-standing relationships.
- Disqualification from acting as a director, in severe cases.
- Career implications, especially where future board roles or investment opportunities are concerned.
With an in-depth understanding of the complex mix of legal, commercial, and personal factors at play, our experienced solicitors take the time to fully understand your position – advising you on your rights, responsibilities, and the most effective path forward.
Resolving director disputes – our approach
We focus on resolving director disputes swiftly and cost-effectively to protect your commercial interests and personal reputation. And – wherever possible – we aim to preserve valuable business relationships.
- Informal negotiation: Often the fastest and least confrontational route, we can help you explore solutions before positions become entrenched.
- Mediation and ADR: Mediation is a structured yet flexible process that allows parties to resolve disputes with the help of an independent third party. It is confidential, often quicker than court, and can result in creative solutions that litigation cannot offer. We regularly represent clients in mediation and other ADR processes including arbitration.
- Settlement agreements: We can draft or negotiate settlement agreements that set out clear, binding terms – including director resignations, share transfers, or future conduct provisions – to minimise the risk of further disputes.
- Court proceedings: If negotiation and ADR are unsuccessful or inappropriate, we will represent you robustly in litigation. This might involve urgent applications for injunctions, derivative claims, unfair prejudice petitions, and director disqualification proceedings.
Whether through discreet negotiation, structured mediation, or robust litigation, we’ll develop a legal strategy tailored to your specific objectives.
Why choose Summit Law?
A boutique firm with deep expertise in director disputes, whether you’re seeking an early settlement or need to go to court, we’re by your side every step of the way.
Here’s why clients trust us:
- Expert commercial litigation solicitors: Our legal team has extensive experience acting in high-stakes company disputes. We understand the dynamics of boardrooms and the pressures directors face when things go wrong.
- Tailored legal strategies: We provide strategic advice tailored to your circumstances, goals, and commercial interests.
- Discreet and professional approach: We understand the sensitivity of internal company disputes and act with complete confidentiality.
- Transparent fees and flexible funding: We offer transparent pricing with clear fee structures and updates.
To discuss how we can help resolve your director dispute, complete the enquiry form or call 020 7467 3980 today.
Director dispute lawyers - FAQs
A fiduciary duty is a legal obligation for directors to act in good faith and in the company’s best interests. This includes avoiding conflicts of interest and acting honestly. Breaches of fiduciary duty can lead to personal liability and removal from office.
We offer a range of funding options, including fixed fees, staged billing, and conditional fee agreements in suitable cases. We’ll always explain costs upfront.
The timescale varies depending on the complexity and whether the dispute is resolved informally or through court proceedings. Some disputes can be resolved in a few weeks through negotiation, while litigation may take several months or longer.
You should seek legal advice as soon as a dispute arises, or if you suspect one is brewing. Early intervention can prevent escalation and protect your legal and commercial interests, while delays can lead to greater financial and reputational risk.
Yes, shareholders may bring a derivative claim against a director on behalf of the company if there has been a breach of fiduciary duty or other wrongdoing. These claims are complex and require court permission. We can advise on your rights and the merits of taking action.
As a director, you remain subject to your statutory duties under the Companies Act 2006, even if you’re in dispute with other directors. You must continue to act in the best interests of the company and avoid any conduct that could amount to a breach of duty or misconduct.
If a dispute goes to court, possible remedies include director removal, compensation, injunctions, or even winding up the company in extreme cases.
Speak to a director disputes lawyer today
If you’re involved in a director dispute – or are worried one may be developing – don’t wait. The earlier you seek advice, the more options are available to you.
At Summit Law, we offer practical, clear advice to directors and shareholders across the UK. Call us now on 020 7467 3980 or complete our enquiry form for a confidential consultation.
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