Shareholder Disputes

How can a dispute arise?

There are many different reasons why a dispute may arise between directors, shareholders or partners of a business. These include:

• Misconduct – a partner may wrongfully exercise their lawful authority, fail to perform an act they are required to do by law, or even behave rudely or aggressively towards others
• Breach of duty – a fellow partner may act in breach of an existing fiduciary obligation they owe to the business, especially if they are a director
• Collapse of a professional relationship – partners may have a disagreement in, or outside of, the business that results in a complete breakdown of their working relationship
• Lack of involvement – it may become clear that another partner spends most of their time away from the business and shows a lack of interest in promoting its success

Some businesses can refer to a partnership agreement to determine the procedure to follow to resolve the dispute.

However, sometimes it cannot be resolved by a written agreement and the parties involved may need legal intervention.

Choosing the appropriate director dispute solicitors can achieve the result you want.