Director/shareholder disputes and management

A healthy business is one in which shareholders and directors can disagree and challenge each other. However, sometimes disputes arise. At Talbots Law, our expert team of shareholder dispute solicitors can help you successfully manage any breakdown in relationships so that it does not damage your business, supply chain or business reputation.

Holding a company directorship is a challenging position, carrying much responsibility. Shareholders can be demanding. At times, this leads to differences in opinion. Disputes between shareholders and directors can arise over the business’ future strategy. Dividends and bonuses can cause disagreement.

If there are family members or close friends involved, this can lead to questions about dealings between themselves, the business and third parties. There are also statutory obligations that need to be observed by anyone in office.

Whatever the cause of conflict, finding a solution, and quickly, is important. The commercial  solicitors at Talbots Law will outline your options and agree a strategy with you.

It is always best to resolve shareholder/director disputes as soon as possible. Speak to the shareholder and director dispute solicitors at Talbots Law for advice today on 0808 304 2302. Or fill out our online form.

Our Dispute Resolution Team

Why should I choose Talbots Law for director and shareholder disputes?

The shareholder and director dispute solicitors at Talbots Law have a passion for business.  We understand the pressures and frustrations you can face when trying to grow a profitable organisation. From large multi-national corporations to SMEs to family-run corner shops, we have helped large and small organisations resolve disputes between directors and shareholders, quickly, competently and effectively.

At Talbots Law, we are business people first, lawyers second. In situations where there is a deadlock, we will work diligently with all parties to the dispute to ensure it is resolved speedily, allowing normal business to resume. Our experience in business law and ability to collaborate with internal and external teams skillfully and confidently, is the reason why we are the preferred law firm for businesses in the West Midlands.

Here’s why you should choose Talbots Law’s shareholder and director dispute solicitors:

  • Recognised for quality – As one of the first law firms in the area to earn the Lexcel quality mark, we promise expert guidance in a way that’s easy to understand.
  • Trusted by clients – Rated 5 stars on Trustpilot by over 600 happy clients, our dedicated shareholder dispute lawyers provide personalised support and guidance throughout your dispute.
  • Employee-owned and client-focused – With almost 500 staff across our offices, every member of our Dispute Resolution team is invested in your success
  • Specialist expertise – We understand the commercial implications of disputes and aim to protect your business and relationships.
  • Flexible and transparent pricing – We offer clear cost estimates upfront, with practical fee options.

Alternative Disputes Resolution

Wherever possible, our director and shareholder dispute solicitors will try and procure an agreement outside the courtroom. 

We have a vast experience of using mediation to discuss the situation that caused the dispute openly, to find remedy rather than fault. If an agreement is reached in mediation, you save yourself time, costs and can move on with achieving your commercial goals.

Mediation will only be successful if all parties are willing to listen, cooperate and have the motivation to reach an agreement. However, we know that this isn’t always possible in a commercial situation. 

When things get complicated and the dispute escalates, we’ll stand by you. In this case, our company law solicitors will fight tooth and nail to secure your desired outcome and protect the best interests of the organisation.

Litigation

If legal action is required, we will explain the consequences. Our professional advice will help you decide the best option as we’ll explain the likely outcome, expected timescales and we’ll ensure that you know the likely costs.

If it is in your interests, we will fight for settlement as early as possible; however, if court proceedings are inevitable, we will engage the most experienced counsel on your behalf.

 

Director & shareholder disputes FAQs

What are main causes of disputes between directors and shareholders?

The main causes of disputes between directors and shareholders typically stem from disagreements over how the company is run and how its benefits are distributed, as well as communication between key stakeholders. Other reasons include:

  • The director breaching his or her duties;
  • Disagreements over the strategy and management of the company;
  • Disagreements over the payments of dividends and/or bonuses;
  • Exorbitant director’s salaries or bonuses;
  • Directors having conflicts of interests;
  • Shareholder being excluded from decision making;

A breach of the Articles of Association or Shareholders’ Agreement.

How can I avoid disputes occurring in the first place?

The easiest way to avoid disputes occurring is to have a clear, comprehensive Articles of Association and Shareholders agreement in place which include a disputes resolution process to be followed should a disagreement arise.

Can shareholder disputes be resolved without going to court?

Many shareholder and director disputes can be resolved without court proceedings. Alternative dispute resolution methods, such as mediation or arbitration, allow parties to discuss issues openly and reach a mutually acceptable solution. 

Resolving disputes through these methods can save time, reduce costs, and preserve business relationships. However, if it fails or the dispute is particularly complex, litigation may be necessary to protect your interests.

It is always best to resolve shareholder/director disputes as soon as possible. Speak to the business solicitors at Talbots Law for advice today on 0808 304 2302.

Ask us a question

We’re here to help. Please fill in this simple form and we’ll get back to you as soon as possible.

We’ll only use this information to handle your enquiry and we won’t share it with any third parties. For more details see our Privacy Policy.

Managing Your Company

Contract Disputes

Getting you back on track. 

Debt Recovery

Making sure cashflow remains positive.

Director/Shareholder Disputes

Disagreements happen.

Employment & HR

Working alongside you and your staff.

Employment Policies

Support with documents and policies.

Insolvency

Ensuring you get the best advice at all times.

Mediation

Often it's better to talk and reach agreement.

Partnership Disputes

Helping you work together to find a solution.

Restructuring

Restructuring and redundancy advice and assistance.

Settlement Agreements

Helping you decide if it's the right thing for you.

Secret Link