Litigation Solicitors in Colchester, Ipswich, London and Woodbridge
Contractual Disputes Lawyers
Although Attwells Solicitors are best known for our award-winning conveyancing services, we also provide a full range of corporate and commercial law solutions. When a business dispute arises, whether between directors, shareholders, or partners, our specialist Litigation Team is ready to protect your interests.
Contractual Disputes Solicitors
At Attwells Solicitors, we understand that disputes between directors and shareholders can be disruptive, stressful, and potentially damaging to the business. These disputes often involve not only legal issues, but also personal and financial pressures. Our team is experienced in navigating the complex and sensitive dynamics that arise, providing clear, strategic advice to protect your interests and secure the best possible outcome.
Whether you are a minority shareholder seeking fair treatment or a co-founder facing deadlock, we can help.
Common Causes of Shareholder Disputes
Shareholder disputes can arise in a wide range of circumstances. Some of the most frequent causes include:
- Lack of a shareholder agreement: Without a written agreement, disagreements can quickly escalate.
- Deadlock between 50:50 shareholders: Equal ownership can result in gridlock when decisions cannot be reached.
- Disagreements over business strategy: Differing visions for the company’s direction or growth.
- Majority shareholders acting in self-interest: Excluding minority shareholders or misusing company assets.
- Concerns over dividend policies or remuneration: Disputes about how profits are distributed.
- Breach of director duties: Allegations of misconduct, negligence, or conflicts of interest.
Valuing Shares in a Dispute
When one party exits, determining a fair valuation of shares is often the most contentious issue. We can review your company’s articles of association and shareholder agreements to clarify:
- Valuation methods (e.g. market value, independent expert valuation, or formula-based approaches)
- Transfer restrictions (e.g. pre-emption rights or lock-in clauses)
- Timing and conditions of sale
How to Resolve a Shareholder Dispute
Our approach is to resolve disputes in the most efficient, cost-effective, and pragmatic way possible. The best method will depend on the circumstances, but options may include:
1. Share Buyback: The company may buy back the departing shareholder’s shares. This can be tax-efficient and allow the business to continue smoothly, but strict legal requirements must be satisfied to pursue this option.
2. Separation or Reorganisation: In some cases, restructuring the business or separating shareholders into different ventures can allow parties to part ways while preserving commercial value.
3. Enhanced Rights for Minority Shareholders: We can negotiate additional protections to ensure fair treatment, prevent abuse of power, and safeguard your investment.
4. Court Action (Last Resort): If agreement cannot be reached, we are prepared to act decisively. Options include:
- Unfair prejudice petitions – Claims against majority shareholders who act unfairly.
- Derivative actions – Where shareholders bring claims on behalf of the company.
- Winding-up petitions – As a final step where it is just and equitable to end the company.
Get in Touch
If you are facing a shareholder or director dispute, early legal advice is essential. Contact our team today for a confidential discussion about your situation and how we can help, call our Head Office on 01473 229200.
