It was crisis time and you ladies stepped up to the plate
Just a quick note to thank you for helping out! It was crisis time and you ladies stepped up to the plate (baseball term). I appreciate your help and apologies for all the phone calls.Professional Golfer
Vaida has done a wonderful job and has been very responsive with the daily crises of submitting our Tier 1 application. She has been extremely patient with us as well so we are very grateful to both Rahul and Vaida. Honestly we were shocked but overjoyed that the visa was approved so readily and without an interview or additional documentation. We wish you the best and thank you so much for your help and support.Kevin and Jane
Happy to recommend
A good friend had recommended Amisha from Hudson McKenzie. I needed help with my application for British Citizenship and was looking for a competent lawyer to help with the process. I was not disappointed: Amisha and her colleague Vaida were very competent and personable at the same time. Very approachable and friendly and happy to help, advise and reassure all the way through the process. Thank you very much, both of you, you made a stressful time just that bit easier. Happy to recommend!Gabriella Z
Very grateful for your service!
It was a great experience working with your company and you Amisha, in terms of knowledge on the processes involved in getting Tier 2 and in terms to professionalism, we have learnt a lot from you.You are one of the finest Customer Support Representative I have ever met, your patience towards answering several questions left me amazed. Your calmness has left me dazzled for sure you will be one of my examples during my training's for Customer Service along with several other world renowned companies’ experiences.Amisha, you are an example of how customer service should be experienced with customers, you have set very high expectations for us as a company to handle our customers and clients as well. You are a big asset to your firm.Thank you once again for your incredible service! We shall get back to you if we need any other professional help or service in the near future.Harish
I would like to personally thank you for helping me in this matter, you have been absolutely amazing!Ms. Frew
Shareholder Dispute Lawyers London
The ability for shareholders to operate together to progress a business is vital. However, when trust between these individuals breaks down, the dispute can have significant adverse effects on the success of the business. In order to appreciate the technical nature of shareholder disputes, it is necessary to understand the legal concepts and remedies available.
What is the Legal Position of Shareholders?
Although directors are responsible for the day-to-day running of the company, shareholders control the decisions. By instructing the board of directors, shareholders are able to steer a company in the desired direction.
However, this power operates on a majority basis and does not assist a minority shareholder who disagrees with the majority. In this case, a shareholder has some remedies available through law depending on their circumstances.
Guidance for resolving disputes should be set out within the company’s articles of association or a shareholders’ agreement. Anticipating possible and typical disputes may save shareholders time, money and effort.
Articles or agreements normally call for dispute mediation in the first instance. This involves discussions through an independent and neutral party to negotiate towards a solution that protects business interests.
Should mediation provide unsuccessful, the articles or agreement may provide guidance for the shareholders to dissolve their relationship. Normally, these legal mechanisms include the option to require others to buy a shareholder out at a fair price or each party making offers for the others shares, the highest price winning the right to purchase.
Statutory Rights of Shareholders
Statutory rights are regulations provided by law and apply regardless of individual circumstances or agreements. Shareholders may use these in the context of a dispute. They include the right to inspect the company register and to require the company to call general meetings. Disputes may be addressed and mitigated if brought into a public forum and discussed at a shareholders meeting.
Personal rights of shareholders
Shareholders also have personal rights they may enforce. These include:
- The right to enforce rights within the articles or agreement,
- The right to object to an improper amendment to the articles,
- The right to bring an action to prevent a transaction that is outwith the power conferred by the articles.
Additionally, a shareholders agreement may also have remedies that are enforceable. Should these mechanisms not resolve a dispute then a minority shareholder has the following options:
- Evaluate whether they may be entitled to bring a claim on behalf of the company (for example, due to director impropriety),
- Seek to enforce statutory protection afforded to minority shareholders. Under s.994 of the Companies Act 2006, a shareholder may petition the court where the affairs of the company are being conducted in a manner that is unfairly prejudicial to all or part of its members.
The appropriate remedy is highly dependant on the facts of the individual dispute.
Reason for disputes
Disputes escalate because parties don’t understand their shareholder’s rights and how to use these to reach a solution to conflict. Receiving legal advice from an early stage may save significant time, energy and resources and, ultimately, may rescue the collapse of the enterprise.
As has been discussed, the law relating to shareholder disputes is a highly technical and complex area. Boardroom disputes revolve around individual facts, and they can be won or lost depending on whether experienced legal advice has been sought at the earliest opportunity. Hudson McKenzie offers a personal and responsive service for navigating this complex area of law. With significant experience in company law and a reputation for swift and approachable expertise, Hudson McKenzie is well equipped to help resolve boardroom battles.
Contact our Shareholder Dispute Solicitors London, UK
For further information, please contact our shareholder dispute lawyers in London – click here or call us on +44 (0)20 3318 5794.