Director and shareholder disputes
The breakdown of relationships within a corporate structure can present hugely complicated scenarios.
At one extreme, there may be virtually no documentation at all, beyond the basic essentials that were required on formation of the company. Consequently, there may be no agreed mechanism for resolving deadlock in the management of the company, no rules relating to sale and purchase of shares and no service agreements recording the rights and responsibilities of executive directors.
At the other extreme, we see bespoke articles of association, shareholders agreement, service contracts and the sort of complex arrangements set up by non-executive investors with significant control of the company.
Add to any of these situations serious employment issues, arguments about confidential information, fiduciary duties, unfair prejudice and debenture holdings and these become multi-faceted puzzles that will require a good deal of strategic thinking as well as a working knowledge of the relevant law.
We have long experience of dealing with disputes of this type from one end of the spectrum to the other and can bring to bear the resources to mitigate, negotiate and resolve. We have the connections to those who understand and can advise upon tax implications of demergers and other scenarios.
Often these are situations where the livelihood of individuals, if not the entire business, is at stake because of the debilitating effect of discord and deadlock. Solutions may not be simple but inaction is likely to be far more expensive.
As in so many situations, the key to successful resolution is often early attention and that means above all getting expert, technical and strategic advice. Don’t delay. Email us now or telephone 01460 200450.