Shareholder Dispute Solicitors
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Shareholder Dispute Solicitors
Shareholder disputes don’t just impact the boardroom – they can threaten the future of a business. Whether you’re being sidelined from decisions, facing a deadlock, or are concerned about fairness and transparency, we help you take control of the situation.
We work with clients across the UK, representing both majority and minority shareholders, and we have a proven track record of resolving disputes without lengthy court battles. Whether you want to repair a fractured relationship or make a clean break, we’ll help you move forward in the best possible position.
For your free shareholder dispute consultation, simply call our team today on 020 7467 3980 or complete the enquiry form on this page.
What are shareholder disputes?
A shareholder dispute is a disagreement between individuals or entities that own shares in a company. These disputes can arise for many reasons, and while some are relatively straightforward, others can be extremely complex, particularly when legal rights, company structures, and personal relationships overlap.
Early legal advice is key to resolving the issue and protecting the business when a shareholder dispute occurs.
Common causes of disputes between shareholders
- Personality clashes or breakdowns in trust
- Disagreements over business strategy, direction, or management
- Minority shareholder disputes
- Lack of access to financial information
- Breach of directors’ duties
- Fraud related disputes
- Derivative actions
- Conflict of interest
- Actions that unfairly prejudice the interests of certain shareholders
- Unequal contributions or performance
- Issues following a shareholder’s illness or death
- Disputes over share valuation or ownership
- Disagreements during company sales or exits.
While these shareholder disputes are common, every business is unique. That’s why we dive deep into your situation to craft the best solution tailored to your needs.
We also advise clients on implementing preventive measures, such as robust shareholders’ agreements and tailored Articles of Association, which can reduce the risk of future disputes.
Shareholder rights
Your rights as a shareholder depend on the class and number of shares you hold, the company’s Articles of Association, and any shareholders’ agreement in place.
However, under the Companies Act 2006, most shareholders have rights including:
- Voting at general meetings
- Receiving dividends (if declared)
- Access to filed statutory company accounts
- Inspecting specific company documents
- Receiving notice of general meetings
- Receiving a share of surplus assets if the company is wound up.
We advise shareholders on enforcing these rights and challenge actions that violate them.
Minority shareholder disputes
Under UK law, minority shareholders have key protections. Common grounds for minority shareholder disputes include:
- Exclusion from management
- Disagreements over the company’s direction
- Withholding dividends
- Misappropriation of company assets
- Making decisions that benefit some shareholders over others
- Breach of director duties.
We help minority shareholders enforce their rights and secure fair outcomes, often without going to court. But if litigation is necessary, we’re ready to protect your position. For majority shareholders facing unfair prejudice claims, we provide a strong defence – addressing allegations and negotiating solutions that protect your control and financial interests.
With experience on both sides, we anticipate and use the opposition’s strategy to your advantage.
50/50 and equal shareholder disputes
In a 50/50 ownership structure, without a casting vote or dispute resolution clause, disagreements often lead to deadlock. Even when dealing with minor conflicts, shareholders can ‘double-down’ into entrenched positions, making resolutions feel impossible.
Our shareholder dispute solicitors focus on resolving deadlock through mediation, negotiation, or, where necessary, applying for a winding-up petition. We aim to break the stalemate and allow both parties to move forward – whether through a buyout, restructure, or formal dissolution.
Director and shareholder disputes
When directors are also shareholders, disputes can affect company management and ownership. These situations are especially sensitive, often blurring the lines between personal interests and fiduciary duties.
We advise on all aspects of director disputes, including director removal, boardroom conflict, and shareholder agreements that establish clear roles and responsibilities. Whether you’re enforcing your rights, responding to internal challenges, or negotiating an exit, we help you safeguard your shareholding and your position within the business.
Partnership and shareholder disputes
Partnership disputes often arise where the line between shareholder and partner is blurred. Whether your business operates as a company or partnership, we can advise on your rights, obligations, and dispute resolution options.
We work sensitively in these cases, often helping parties salvage working relationships or exit on fair terms.
Resolving shareholder disputes – our approach
The best way to resolve a shareholder dispute depends on your specific situation. We always take a strategic, proportionate approach, and wherever possible, we resolve disputes outside of court through:
- Mediation: A neutral third party helps both sides reach a voluntary agreement. Mediation is often quicker and less costly than litigation and can preserve business relationships.
- Negotiation: We engage directly with the opposing party or their representatives to find practical solutions that meet your commercial and personal objectives.
- Arbitration: A binding decision is made by an independent arbitrator. Arbitration offers privacy, speed, and finality where parties agree to this method in advance.
Our team has extensive experience in bringing and defending High Court actions. So, when alternative dispute resolution isn’t viable or has failed, we are fully prepared to litigate.
Shareholder dispute solutions
We use several legal and commercial mechanisms to resolve shareholder disputes, depending on the nature and severity of the issue. These include:
- Splitting the business: When shareholders wish to part ways, we assist with demergers or asset divisions to allow each party to continue separately.
- Variation of rights: Shareholders may agree to change the class or terms of their shares, allowing one party to reduce involvement while retaining some financial benefit.
- Share buybacks: The company may buy back and cancel shares as part of a negotiated exit strategy.
- Director disqualification: If a director has acted improperly, we can apply to disqualify them under the Company Directors Disqualification Act 1986.
- Unfair prejudice petitions: Where a shareholder’s rights have been undermined, we may apply to the court for remedies including buyouts of the petitioner’s shares or changes to company governance.
- Court action: As a last resort, litigation may be required to enforce legal rights or resolve deadlock.
- Dissolution: Where continuing the business is no longer viable, shareholders may agree (or be compelled) to wind up and dissolve the company.
Shareholder disputes and injunctions
In urgent shareholder disputes, an injunction may be needed to protect your interests or the company’s assets. Injunctions are particularly useful where there is a risk of irreparable harm – such as a director misusing company funds, a shareholder trying to transfer shares unlawfully, or the improper calling of a meeting.
If you believe immediate action is needed, speak to our shareholder dispute solicitors without delay.
Making a shareholder dispute claim
- Clarify your rights and obligations: We review the company’s Articles of Association, shareholders’ agreement, and statutory provisions to clarify your protections and powers.
- Identify the best legal route: We help you weigh up negotiation, mediation, arbitration, and court action, and explain the likely timescales, costs, and outcomes for each.
- Gather evidence: We help collate documents, communications, financial records, and other evidence to build a clear and persuasive case that supports your position.
- Formulate a tailored strategy: Based on your objectives, we’ll recommend the right approach – whether that’s seeking an early exit, enforcing your rights, defending a claim, or preparing for litigation.
- Act on your behalf: We represent you in correspondence, settlement discussions, mediation sessions, arbitration hearings, and High Court proceedings.
Why choose Summit Law?
Our commercial litigation lawyers get to know you, your business, and your situation to resolve your shareholder dispute quickly and cost-effectively.
- Proven experience: We’re commercial litigation specialists with deep knowledge of shareholder law.
- Tailored strategy: We assess every case on its merits and build a bespoke strategy to achieve your objectives.
- Clear communication: We explain your options clearly and guide you at every step.
- Cost control: We offer transparent pricing with clear fee structures and updates.
To discuss how we can help resolve your shareholder dispute, complete the enquiry form or call 020 7467 3980.
Shareholder dispute solicitors - FAQs
Shareholder disagreements can paralyse decision-making and affect business performance. Legal advice is essential to protect your interests and the company if you can’t resolve the issue internally.
A majority of shareholders can usually remove the directors of a company. However, the process must comply with the Companies Act and contractual agreements to avoid potential litigation.
Yes – shareholders can take directors to court under certain circumstances. Here are the main routes:
- A shareholder can apply to court if a director’s actions are unfairly prejudicial to their interests as a shareholder.
- A shareholder may bring a derivative action claim on behalf of the company.
- If a director has breached a shareholders’ agreement or articles, a shareholder can seek enforcement or damages through the courts.
- If a director has committed fraud, misrepresentation, or wrongful trading, shareholders may bring claims under civil or criminal law.
Such claims are rarely straightforward, so expert legal advice is recommended.
Shareholders have the right to see the company’s filed statutory accounts. Access to management accounts, bank statements or other detailed financial information is limited unless specified in a shareholders’ agreement.
This is a claim brought by a shareholder on behalf of the company, usually against a director who has:
- Breached their duties (e.g. acted negligently, dishonestly, or for personal gain)
- Caused loss to the company
Court permission is required before proceeding, and any damages awarded go to the company, not the individual shareholder.
These include voting rights, access to company information, the right to dividends (if declared), and protection from unfair prejudice. These rights are mainly set out in the Companies Act 2006.
Usually, only if the company’s articles or shareholders’ agreement allows it. Otherwise, a court order may be required – typically following a successful unfair prejudice petition or breach of contract.
Timelines vary depending on the complexity of the case and whether it’s settled out of court. Mediation can resolve disputes in weeks, while litigation can take months or longer.
We offer a range of litigation funding options, including fixed fees, staged billing, and conditional fee agreements in suitable cases. We’ll always explain costs upfront.
You retain your legal rights unless a court or agreement states otherwise. We help ensure your rights are respected throughout the process.
Speak to our shareholder dispute lawyers today
If you’re dealing with a shareholder dispute, don’t wait for it to escalate. With years of experience and an unparalleled track record, our shareholder dispute solicitors know what it takes to secure a favourable outcome.
Call Summit Law on 020 7467 3980 or complete our enquiry form. Our experienced shareholder dispute solicitors will protect your interests and help you move forward with confidence.
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