Director and shareholder disputes and unfair prejudice
Disputes between directors and shareholders can be common, but can have a detrimental impact on the operational efficiency of a company which means it is vital a swift and effective resolution is reached.
Disputes can arise through multiple scenarios, but a common thread is a significant disconnect between directors or between a director/s and shareholders.
With director disputes, we work closely with our employment team, as well as considering whether there has been a breach of any relevant directorship agreement or breach of the director’s fiduciary or contractual duties.
In order to resolve director and shareholder disputes and unfair prejudice, we would typically: obtain examples of wrongdoing; share evidence of this to the other party and engage in pre-action correspondence to try and settle the matter via a share buy out or return or funds or similar; or consider engaging in alternative dispute resolution.
Recent work includes:
- We acted for a defendant on a £50m fraud/share ownership agreement where the claimant sought to transfer ownership of the company from our client and rely upon a declaration of trust. We obtained expert evidence to discredit the declaration of trust and obtained a favourable settlement for our client.
- Acted for a claimant in a £20m joint venture agreement in relation to a multi-million-pound commercial site. We lined up After The Event (ATE) and anti-endorsement policies to help fund the claim.
- Acted for a claimant in relation to an £18m shared ownership dispute. We persuaded the other side to withdraw its security for costs application and pay our client’s costs saving our client c.£1m. This figure would have been the likely cost and success payment of obtaining additional security.
- Advised a claimant in a £2m shareholder dispute where two shareholders had entered various joint building developments, but the defendant was believed to be acting inequitably. This dispute involved issues surrounding breach of contract, unfair prejudice and undue influence.
- Acted for a claim worth c. £15k for damages arising from a restaurant partnership, whereby our client sought monies believed to be overcharged by the defendant.