Disputes between directors and shareholders commonly arise where one party alleges another is performing poorly, has breached their duties as a director, or where a minority shareholder claims the Company is being run in a manner that is unfairly prejudicial to all or some of its shareholders.
Director and shareholder disputes are often very complex and technical affairs, not least because those involved may be directors, shareholders, and/or employees, with each status bringing different legal obligations and rights. More often than not, where the relationship between the parties has broken down, all three positions have to be terminated. It remains undesirable for a former director to remain in the Company as a shareholder, particularly where their contribution is much more limited following withdrawal of their day-to-day involvement with the Company.
These sorts of disputes are very often won by virtue of careful planning and the implementation of the right tactics at the right time. Therefore, obtaining expert legal advice at the very outset is of the utmost importance.