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DISPUTE RESOLUTION: Directors and Shareholder Disputes

Directors face considerable potential liability for the running and shortcomings of their companies. They also face the possibility of claims for breach of duty, breach of trust, and fraud claims with the prospect of disqualification from holding the position of director looming over them.

Shareholders have their own concerns. The majority of small businesses have an overlap between directors and shareholders and that overlap can lead to confusion over rights and obligations. Minority shareholders in particular can feel exposed to what they see as chipping away at the value of their holdings.

Most of our work with both directors and shareholders is aimed at avoiding disputes from arising. When they do or if a director is the subject of disqualification proceedings, then we aim to provide the best and most pragmatic advice, bearing in mind that the success of the particular business will always be at risk if disputes fester.