Shareholder Disputes & Resolution
Disputes between people are inevitable and are especially common when money is involved and the outcome to any dispute is likely to affect your day to day life. Even if a dispute seems to be a relatively small issue, it can often easily blow up if a shareholder feels ignored.
Minority shareholders often think that they are powerless against the majority shareholders in a company and that there is not anything they can do if they feel the majority shareholders have acted unfairly. This is not the case and Summit Law LLP are often instructed on behalf of minority shareholders in order to protect their position.
A minority shareholder can issue a claim in their personal capacity against the majority shareholders of the company and even the company itself if their position is being unfairly prejudice, example of this can include disputes relating to:
- The direction and strategy of the company
- Non-payment of dividends
- Non-payment of salary
- Potential conflicts of interest
- Buying or selling shares
- Loss of property/allegations of fraud
A deadlock position could potentially arise if the shareholders of a company cannot agree on certain issues, which then effects the day to day running of the company and in turn, the profitability of the company. It is therefore essential that shareholder disputes are taken extremely seriously and that the correct advice is sought at the earliest possible stage.