Shareholder and Partnership Disputes

No one enters into business thinking their relationship will turn sour. However, relationships within business can sometimes break down and become irretrievable.

In some situations, the decision-making with businesses can soon become deadlocked, and the company itself can begin to fail due to a shareholder or partnership dispute.

At Warner Goodman, we are on hand to advise partnerships, directors and shareholders about their duties, rights and remedies and resolve disputes either by way of alternative dispute resolution or court proceedings.

Our specialist team can work alongside you to find the most suitable resolution, keeping disruption minimal. We can advise on the following:

Partnership disputes
Director's duties disputes
Shareholder disputes
Procedural applications – The Companies Act 2006

We understand how important it is to manage the potential costs and expenses of litigation, so we will be happy to discuss your options for funding with you. Specific claims may be funded under a Conditional Fee Agreement, and we can also act on your behalf if you have legal expenses insurance.

Speak to our shareholder and partnership dispute solicitors

To discuss your shareholder or partnership dispute and discover how we can help you and your business, please contact our shareholder and partnership dispute solicitors in Southampton, Portsmouth, Fareham, Chandler's Ford and Waterlooville.

How our shareholder and partnership dispute solicitors can help you

Partnership disputes

Through dialogue and mediation, our solicitors can assist partnerships in dispute to resolve their issues and reach an amicable agreement without the conflict escalating into legal proceedings and court litigation.

Where an agreement cannot be achieved, our team has experience conducting litigation to wind up partnerships and ensure the best return for the partnership assets.

Director's duties disputes

Directors of limited companies can have differences of opinion as to how best to run a business. Sometimes, the actions of one director can be prejudicial to the interests of the other directors and the business as a whole.

We can analyse a director's actions and advise if there has been any breach of the company's articles of association or if a director has exceeded their duties. We have extensive experience resolving issues arising between co-directors and taking legal action against directors for breach of their obligations owed to the company.

Shareholder disputes

When investing into a company, there is always a risk that you will not secure a return on your investment. What happens, however, if your shareholding is being prejudiced by the actions of the directors running the company? Or if the terms of a Shareholders Agreement have not been upheld?

Having represented shareholders in the Companies Court, we are well placed to advise on the prospects of successfully securing an order for a party's shareholding in a company to be purchased for a fair value, as well as holding directors accountable for how they have carried out their duties and run the business.

Procedural applications - The Companies Act 2006

Occasionally, companies fail to comply with numerous obligations under the Companies Act 2006. The only way to rectify matters is to apply to the Companies Court.

We have experience in making applications to and appearing before the Companies Court, obtaining orders allowing companies to comply with the provisions of the Companies Act 2006.

Why work with our shareholder and partnership dispute solicitors?

At Warner Goodman, we have established a strong reputation for the high level of expertise our team possesses and the standard of service they provide. As a firm, we have been awarded the Lexcel accreditation by the Law Society, reflecting the high standards of practice management, compliance, and client care we provide.

We understand how disruptive shareholder, partner and business owner disputes can be. We always take the time to understand the broader context of every case, ensuring that the correct shareholder and partnership dispute resolution method is always utilised.

Frequently asked questions about shareholder and partner disputes

How do you resolve a shareholder dispute?

There are several potential methods to resolve a shareholder dispute. The most effective and suitable methods will ultimately depend on the broader circumstances and whether the relevant parties are willing to negotiate with one another.

Potential dispute resolution methods that could be used include:

Mediation
Arbitration
Conciliation
Negotiation

Where these methods are ineffective or cannot be utilised, the only way to resolve a shareholder dispute may be to take the matter to court.

What action can shareholders take against directors?

There may be certain situations where the company's shareholders can claim against a director who has breached their fiduciary duties.

It should be noted that shareholders can only initiate litigation where they bring a claim against a director in the company's name – not their own. These are known as derivative claims.

Can I be forced to sell my shares in a company?

Typically, as a shareholder, you cannot be forced to sell shares in a company. This is unless you have previously agreed to a process that results in that outcome via the terms of a Shareholders Agreement or the court makes a legally binding order to sell your shares.

Can your business partner sell without your consent?

The actions your business partner can take without your consent will depend on the type of business and how it is currently regulated. For example, your business partner may be able to sell the business without your consent if you do not have a written partnership agreement in place.