Shareholder Disputes
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Strategic guidance when business relationships break down
Shareholder disputes are often likened to business divorces. They arise when people who once shared a vision for a company no longer agree on its direction, performance or governance, or due to personal conflict. These disputes are frequently serious – with the potential to cause significant damage to the business – and complex, involving not only share ownership but also directorships and employment rights.
Our team supports clients through these challenging and often emotionally charged situations, providing calm, strategic advice across all aspects of the dispute. Whether you are a founder, investor, director or employee, we help you understand your position and identify a practical path forward.
When clients seek our advice
Shareholder disputes can be triggered by many issues. We advise where co-founders are in conflict over the running of the business, where an investor seeks to remove a founder, or where one party alleges misconduct or underperformance by another. Allegations may involve concerns about honesty, regulatory compliance, bullying or failure to contribute adequately to the business, and are often fiercely contested.
We also advise where business relationships come under strain due to external pressures such as health issues or personal circumstances, and where disagreements arise about the future direction of the company.
In many cases, one or more parties hold multiple roles: shareholder, statutory director and employee, for example. Our multidisciplinary expertise means we are well placed to advise on all aspects of the dispute. We support clients with shareholder rights, directorship responsibilities and employment law protections and risks, helping them develop and execute a strategy for global resolution.
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Clarity on legal rights and realistic options
Our first step is to help clients understand their position in legal, commercial and practical terms. That includes reviewing constitutional documents such as the company’s articles of association and any shareholders’ agreement, as well as assessing relevant employment contracts or service agreements.
Often, clients come to us after a dispute has begun to escalate. In those cases, we focus on practical options for resolving the matter swiftly and with the least possible damage to the business. Where the relationship has irretrievably broken down, the goal is typically to agree terms for one party’s exit from active involvement in the business, including arrangements for the transfer or retention of their shares.
We also support clients who are seeking to remain in the business, where appropriate, and those seeking to enforce their rights as minority shareholders. While court proceedings are necessary in some circumstances, they can be costly, time-consuming and commercially disruptive; wherever possible, we help our clients reach a mutually satisfactory resolution through negotiation.
Protecting value, relationships and reputation
Entrepreneurs often invest years of work, trust and financial commitment into a business, and the breakdown of relationships with business partners can be intensely personal. Our role is to provide pragmatic, measured guidance during what may be a highly stressful period.
We help clients understand what matters most to them, what the other party is likely to prioritise, and where there may be space for a creative, negotiated solution. Where an agreed outcome is possible, as well as protecting the business itself from the damage caused by a dispute, this often allows for more constructive public messaging, protecting the reputations of all involved and minimising the impact on clients, colleagues and other stakeholders.
We also frequently support clients in disputes involving sensitive allegations, including those with regulatory implications. In every case, we tailor our advice to the legal and commercial realities while recognising the personal and reputational dimensions too.
Practical, proportionate support
Shareholder disputes can severely affect the business itself. While parties are at odds, key decisions may be delayed, contracts may be lost, and valued employees may choose to leave. We help our clients resolve matters as swiftly and commercially as possible, avoiding long-term damage to the business and to those involved.
Although litigation is sometimes necessary – for example, to meet a legal deadline or protect our client’s position – we will usually support clients to continue pursuing a commercial resolution in parallel. We are also skilled at handling negotiations with particularly challenging counterparties, drawing on our experience of resolving disputes with a wide range of personalities and dynamics.
Specialist support in founder and investor disputes
Our team has particular experience advising founders and business owners navigating disputes with private equity investors or external shareholders. These cases often involve changes to governance structures, revised performance expectations or pressure to exit. We help clients understand their rights, evaluate their options and respond constructively and strategically.
Whether advising on an agreed departure or defending against unjustified removal, we support clients with a clear and realistic assessment of risk, value and consequence, helping them reach an outcome that protects both their own future and the business they have helped to build.
Helping you move forward
No two disputes are the same. Some raise complex questions of law or company structure, while others are shaped by relationships and diverging perceptions and priorities. We work closely with our clients to understand the full context, manage sensitive dynamics calmly and constructively, and tailor a strategy that reflects both the legal position and their broader objectives, supporting informed decision-making throughout.
Our focus is always on helping clients move forwards swiftly and constructively, minimising disruption to the business and protecting your position while working towards resolution. Our advice is pragmatic and strategic, informed by experience and a clear understanding of what is at stake for you and for the business as a whole.
Please get in touch today to discuss how we can support you to resolve a shareholder dispute.
Our Commercial Disputes Team
