Shareholder Disputes
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Boardroom disputes can occur regardless of the size of the company. A smooth resolution is desirable in any event in order to prevent further damages to the shareholders, stakeholders and/or the company.
There are several key documents that ought to be considered prior to taking action (e.g., Service Agreement, Article of Association and Shareholders’ Agreement).
Shareholder/Director
It is a common practice for a shareholder to be a director of the company at the same time. Therefore, the employment law aspect must be thoroughly considered. Failure of which could amount to wrongful dismissal, unfair dismissal and/or whistleblowing. There are only a small number of ways to remove an a director (e.g. voluntary resignation or via the articles of association).
Is a good practice to deal with the departure by way of a settlement agreement if the shareholder is also a director. Not only will this stipulate the terms of the departure, but this will also protect both parties’ interests during the entire process and protect the company post departure.Â
How we can help
Should you ever find yourself involved in a dispute, our experts can offer you the advice and assistance you need in making a claim or if you intend on defending yourself from one. Please call 020 3051 5060 or leave your message with your contact details and we will get back to you.
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