Shareholder Disputes.

Shareholder & Director Disputes.

Commercial disputes can take many different forms, depending on the individuals involved and their respective levels of seniority. Shareholder & Director disputes are one such example, where a company director and a minority shareholder disagree about a significant decision or some other aspect of running the business.

Depending on the stake held by the shareholder, the process to resolve a dispute might be quite different. Seeking legal advice in the earliest instance is a way to protect against the dispute becoming public knowledge, or subject to a meeting that all the company directors and shareholders can attend.

Lanyon Bowdler appreciates the importance of confidentiality, particularly for big brands dealing with high-level disputes between major shareholders and corporate directors. We work closely with the involved parties to understand the source of the dispute, and to guide everybody towards a resolution that puts an end to the disagreement without damaging the brand.

Key Contact

Andrew Pegg heads our Dispute Resolution Team, he acts for a wide range of clients from individuals to national and multi-national companies advising on a wide variety of disputed matters including contracts, negligence, nuisance, insolvency, land and judicial review. Particular sectors include manufacturing, construction and agriculture as well as professional negligence. Recent instructions include a multi-million pound dispute regarding manufacturing machinery and a complex contractual dispute regarding a long and ambiguous supply chain.

Meet the team

Andrew Pegg

Partner

Commercial Dispute Resolution | Disputes & Court Claims

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Preventing Future Shareholder Disputes

A Shareholders Agreement can be useful in clarifying the rights and responsibilities of minority and majority shareholders, including company directors who hold a stake in the equity of the business.

If you have never had a signed Shareholders Agreement in place, we can help you to draw one up that will properly protect the interests of your organisation, while treating shareholders fairly in the eyes of the law.

Once written, it is essential that Shareholders Agreements are signed by all the relevant parties, if they are to be brought into force in the future to prevent a dispute from continuing unchecked.

We can work on disputes where a Shareholders Agreement has never been in place, as well as advising on putting an Agreement into place as part of your response, to reduce your risk of exposure to subsequent shareholders’ dispute claims in the future.

Our Shareholder Dispute Expertise

If you are a shareholder in a disagreement with director due to one of their decisions in running the business, our experienced Shareholder Dispute Solicitors can help.

Why Call Lanyon Bowdler?

Our commercial dispute resolution solicitors understand the stress that can be attached to a high-level dispute, such as between a director and a significant shareholder in your business. At the same time, we recognise the reputational risk if such incidents become public knowledge via a shareholder meeting or leak to the press.

We aim to provide you with the confidence you need to take your case forward, while mitigating against those risks so that the claim does not do any avoidable harm to your business. Our many satisfied clients up and down England and Wales are testament to our abilities in the field of corporate dispute resolution.

Lanyon Bowdler Partner Andrew Pegg heads up a close-knit team of dispute resolution solicitors and associates, and we put our full shared expertise on to each claim, while giving you named individuals, with faces you’ll come to recognise, to liaise with when you want an update on your case’s progress.

We are proud of the independent recognition we receive for our very high standards, including:

● Accreditation from Lexcel for commitment to practice management and client care
● Consistent recognition from The Legal 500 and Chambers UK for skill in dispute resolution

Put us on your case and you can also gain access to these highly rated and highly regarded capabilities, which have made Lanyon Bowdler a widely known name in dispute resolution in the West Midlands, North Wales, the Marches and nationwide across England and Wales.

Keeping Your Business Interests Safe

The risks of director-level disputes for your business do not end at public perception and reputational risks. Disputes can hamper your board’s ability to make essential decisions about the running of your business, and shareholders with a sufficient stake can become vexatious if they decide to repeatedly challenge the direction of your organisation.

We understand the importance of a smooth-running business that is able to make decisions about its future, including company direction, but also the exit of a major shareholder or director. Whatever you are facing, we will prioritise the health and finances of your company when advising on an appropriate course of action.

As part of this, we also prioritise ADR over litigation to avoid running up unnecessary court costs and time delays, and to keep cases out of the public eye. In either event, we will work to determine the best way forward given the unique circumstances of your case.

Dealing with Cases of Director Fraud

In cases where fraud by a director or major shareholder is discovered, there may be a criminal case to pursue. We can help you to decide if you are obligated to report what you have learned, as well as drawing up cases for private litigation if appropriate.

Fraud is a highly sensitive issue with the potential to significantly harm the value of a household brand name, so again, all cases brought to Lanyon Bowdler are handled with complete confidence, no matter whether your business is a small independent firm or an international brand.

We can also help you to decide how to proceed into the future of running your business, which may require the removal of the offending director or shareholder. We can liaise with all involved parties to make sure they understand what is happening at any given time, to complete any necessary processes without the risk of further disputes arising.

Your Shareholder Dispute questions answered

Who are Lanyon Bowdler?

We are a firm of experienced and passionate solicitors, with clients up and down England and Wales. We have an especially strong presence in North Wales, the Marches and West Midlands, where we are well-known throughout the business community for our high levels of customer service and practice management, for which we are Lexcel-accredited.

Our commercial dispute resolution team, headed by Andrew Pegg, have been recognised numerous times by Chambers UK and The Legal 500 for their skills and expertise. We work diligently on all cases to achieve the best possible outcome for our clients, and we are proud of the independent recognition we receive for a job that is consistently well done.

If you are facing a dispute between two shareholders, two directors, or a shareholder and a director – even if the disagreement has only recently emerged and is in its very early stages – we would urge you to contact Lanyon Bowdler immediately, as the sooner we go to work on your case, the better the chances of resolving it quickly and at low cost.

What Rights Do Minority Shareholders Have?

As a minority shareholder, your rights are fairly limited, but you should be allowed to vote on major decisions that could affect the future of the business, for example appointing a new board-level manager.

You may be invited to an annual general meeting where you and other shareholders can also vote on other issues.

If you are a minority shareholder but you hold more than 5% of the total capital of the business, you gain additional rights, including the ability to call a meeting if you disagree with the decisions made by the company directors.

For this reason, claims that involve shareholders with a stake of over 5% can require more careful handling, as there may be reputational risks involved if the individual decides to call a meeting of fellow shareholders.

How to Resolve Director & Shareholder Disputes

In disputes between directors and shareholders, there can be an imbalance of power. Shareholders typically have a minority stake in the business, whereas company directors may hold a larger or majority stake.

This does not necessarily mean the director is free to make decisions unchallenged, or that the director will be successful in any particular dispute or claim. Professional legal advice from Lanyon Bowdler can allow you to understand each party’s rights and privileges, so that you can make substantial progress towards resolving the dispute without damaging the business.

We will recommend suitable methods of Alternative Dispute Resolution (ADR) where we believe they will bring your case to a conclusion faster, at lower cost and with a mutually agreeable resolution.

Some examples of ADR include:

● Arbitration
● Conciliation
● Mediation

In many cases, ADR involves allowing an independent expert to look at the circumstances of your dispute, and guide you towards a compromise that recognises each party’s rights, but also prioritises a fast, least-harm settlement or agreement.

What are the Different Types of Shareholder & Director Disputes?

Shareholder & Director disputes can arise for a variety of reasons, including (but by no means limited to) the below:

● Business direction decisions
● Dissolving the relationship
● Dividends
● Fraud
● Goodwill valuations
● Removing a director or partner
● Shareholder exit
● Structure and strategy

Disputes may also arise directly between shareholders or between multiple directors of a business. We can advise on such cases whether or not they extend to affect shareholder-director relations as well.

Testimonials

What our clients say.

From the first contact, the team at Lanyon Bowdler gave a fast & efficient service. They were very friendly & gave me the confidence that I had found the right solicitors. The advice given & the fast responses were beyond my expectations. The matter was resolved in no time at all.

Martyn

via ReviewSolicitors

Since dealing with Lanyon Bowdler they have been diligent, efficient and at all times very helpful along with being structured in dealing with matters, fees and clarity on all levels. Thank you.

Michael

via ReviewSolicitors

I was clearly informed of progress step by step. The service you provided was very good.

Peter Weston

Shrewsbury

All work carried out effectively and efficiently.

Hubert Jones

via ReviewSolicitors

An excellent service with solicitors that you can talk to and who give you a clear understanding of all necessary legal implications and interpretations.

Eric

via ReviewSolicitors

From start to finish we had excellent service. Friendly, approachable and professional.

Carl Gittins

via ReviewSolicitors

Very clear, concise advice and guidance, easy to understand.

Ian Jamieson

Telford

Good service provided throughout with clear communication throughout with all options explored.

Lee

I can thoroughly recommend the highly professional and supportive service received over the last few months.

Heather

via ReviewSolicitors

Responsive, supportive, approachable, clear and empathetic.

Lisa Thacker

Professional and prompt communication. Supportive and client focused.

Lisa Thacker

Jennifer M Whittall Ltd

Whenever I have had need to contact Lanyon Bowdler I have always received a fast, concise and friendly response.

Lee Mortimer

UK Case Management

Definitely would use Lanyon Bowdler again if I need the use of a solicitor.

Mark Bowkett

via ReviewSolicitors

Smooth and efficient service from very professional firm.

Tim

via ReviewSolicitors

We were particularly impressed with the quality of work, the speed and excellent communication.

Allenby Douglas Ltd

Oswestry

Very friendly and approachable. Very good advice

Ivor Brown

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Great Service; Lanyon Bowdler were excellent from the outset. Straightforward and easy process. I just sat back and waited.

Paul Rowe

via ReviewSolicitors

Everything has been professional, efficient and courteous throughout and we are very pleased, both with the service and with the eventual outcome of our case. Everything was first class and exceeded our expectations. Thank you again for providing such splendid service. It is really appreciated.

Mr N J & Dr S J Browne

Llanfyllin

Call Lanyon Bowdler Today

Our Shareholder Dispute Solicitors welcome all enquiries, small and large. Many of our clients are big brands and major businesses, so please don’t hesitate to inquire about very high-value disputes or commercially sensitive cases.

Our brand is a widely recognised name in the West Midlands, North Wales and the Marches, but we are able to act for clients located anywhere in England and Wales, and have a long list of successful resolutions in both countries. We have offices in Shrewsbury, Bromyard, Conwy, Hereford, Ludlow, Oswestry, and Telford, so we regularly act for clients throughout Shropshire, Herefordshire, Mid and North Wales. Our proven track-record makes us one of the leading choices for Shareholder Dispute Lawyers in Birmingham, Wolverhampton, and Worcester.

If you would like to know more or to ask us anything about your case, give us a call and you can talk directly to a member of our team. Or fill in our online form with the basic details of your enquiry, and we’ll get back to you as soon as we can to help.

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