Shareholder Disputes

When disputes arise between minority or majority shareholders in a business, it’s not always straightforward to resolve matters internally. If it becomes necessary to take legal action to protect the value of your shareholding, our specialist commercial litigation lawyers can advise on the best route forwards.

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Wayne Beynon of the Shareholder Disputes team

Meet the team

Two solicitors having a meeting

Our shareholder disputes team can help with:

  • Unfair prejudice petitions
  • Breach of shareholder agreements
  • Derivative actions
  • Acting on behalf of shareholders to enforce their rights to purchase or sell shares under sale and purchase agreements.

We combine our technical and commercial expertise to help you determine the best course of action. Whilst it is sometimes necessary to take matters to court, we routinely achieve successful settlements for our clients before trial. If the case does lead to court, we will protect your position to achieve the best possible outcome.

Unfair prejudice petitions

Unfair prejudice claims arise when a shareholder believes that the company is being run contrary to their best interests. Unfair prejudice petitions enable shareholders to seek relief from the court on the basis of ‘unfairly prejudicial’ conduct from other shareholders and / or the directors.

Our team has a strong track record of successfully bringing and defending these petitions.

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Signs of unfair prejudice

Typical signs of unfair prejudice we routinely come across include:

  • Exclusion of the shareholder from the management of the company
  • Directors granting themselves or others excessive renumeration
  • Refusing to pay dividends
  • Shares being transferred or allotted in bad faith
  • Amends to the company’s articles of association which have a prejudicial impact on the petitioner
  • Wrongful suspension and / or dismissal from the company
  • Change of auditors or members of the board without the shareholder’s consent.

Shareholder disputes: FAQs

A shareholder dispute arises when shareholders in a business disagree over an issue connected to the company or its director(s).

You should speak to a litigation lawyer about your legal position and options if you are unable to resolve matters internally. A specialist legal team will be able to advise you in protecting the value of your shareholding and securing the best possible resolution.

Very few cases go to trial. The vast majority settle before reaching trial through alternative dispute resolution (“ADR”). Our strategic approach will recognise whether – and more importantly when – to engage in ADR such as arbitration, mediation and without prejudice offers.

There is no one-size-fits -all solution. Depending on the circumstances, shareholder disputes might be resolved through unfair prejudice petitions, winding up petitions, derivative proceedings and ADR.

It’s often possible to find a way to fund a worthwhile case. We have an excellent reputation in the funding and insurance market and can support shareholders who have limited funds, or no funds at all, with a wide range of funding options.

Services from our dispute resolution team

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Hear what our clients say about us

We worked with Claire Holford on a complicated family company dispute where, at times, emotions ran high. Claire took the time to understand our needs and worked closely and diligently with us, and a suitable settlement was reached.

Client testimonial Shareholder dispute

There are lots of things I didn’t get to do during the five years or so that this was going on. I want to catch up on those and make a plan for the future. Adam Finch and the team were wonderful. I would definitely recommend HCR Law.

Alan Rees Shareholder dispute

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