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Dispute resolution

Shareholder, partnership and director dispute solicitors

When a business relationship breaks down, we help you protect your stake and find a way through.

In short

Ansons Law's shareholder dispute solicitors act for shareholders, directors, partners and businesses when the people who own or run a business fall out. These disputes usually turn on two things: the documents that govern the relationship and the law behind them. A shareholder treated unfairly may be able to bring an unfair prejudice claim under the Companies Act 2006, which often ends in a buyout of their shares at a fair value.

Unfair prejudice
A claim under the Companies Act 2006, often ending in a buyout
No partnership agreement
The Partnership Act 1890 fills the gaps
Head of dispute resolution
Jason Alcock, Director

What decides a shareholder or partnership dispute?

These disputes usually turn on two things: the documents that govern the relationship, such as a shareholders' agreement, the company's articles or a partnership agreement, and the law that sits behind them.

Where there is a good agreement in place, it often sets out how disagreements and exits are dealt with. Where there is not, the law fills the gaps. That can lead to a less predictable outcome. Without a partnership agreement, for example, the Partnership Act 1890 applies. Its default rules can surprise people, including the ability to dissolve the partnership altogether.

What can a shareholder do if the company is run unfairly?

A shareholder who feels the company's affairs are being run unfairly to their detriment may be able to bring an unfair prejudice claim under the Companies Act 2006. That can lead to their shares being bought out.

Directors owe legal duties to the company, and breaching them can have serious consequences. Share and business valuation is often the real battleground, so the basis of valuation matters.

How do we approach a dispute between co-owners?

Disputes between the people who own and run a business are some of the most damaging there are. They affect the business itself, the working relationship and often a lot of personal value tied up in the company or partnership.

In most cases the real goal is a clean, fairly valued exit or a workable way to keep the business running. We advise on your rights and options under the company's or partnership's documents and the law, and we focus on a practical resolution rather than a war of attrition. Early, commercial advice can stop a dispute destroying the value everyone is fighting over.

Going through papers at the round table in the Ansons Law office in Lichfield
What we do

What our shareholder and partnership dispute solicitors can help with

From a falling out between co-owners to a director being forced out, we help you understand and protect your position.
  • Shareholder disputes and deadlock
  • Unfair prejudice petitions
  • Breach of shareholders' agreements
  • Director disputes and removal
  • Breach of directors' duties
  • Partnership and LLP disputes
  • Partnership dissolution and exit
  • Disputes over profit share and drawings
  • Buyouts and share valuation disputes
  • Derivative claims
  • Quasi-partnership disputes
  • Negotiated exits and settlements
Questions

Shareholder and partnership dispute questions

What is an unfair prejudice claim?

It is a claim a shareholder can bring where the company's affairs are being conducted in a way that unfairly harms their interests. A common outcome is an order that the other shareholders buy out the petitioner's shares at a fair value.

There is no shareholders' agreement. Where do we stand?

You fall back on the company's articles and company law, which are less tailored to your situation and can make outcomes less predictable. It is still possible to resolve the dispute, and we will work with what is in place.

Can a director be removed?

A director can usually be removed by the shareholders following the right process, but removal can interact with employment rights, shareholdings and any agreement in place, so it needs handling carefully to avoid further claims.

How are partnership disputes resolved?

It depends on whether there is a partnership agreement. If there is, it usually sets out how disputes and exits work. If there is not, the Partnership Act 1890 applies, which can include dissolving the partnership, so early advice is important.

What usually causes these disputes to escalate?

Often it is disagreement over money, control or the direction of the business, made worse by the absence of clear agreements. Getting advice early, before positions harden, gives a much better chance of a sensible resolution.

Do these disputes always end up in court?

No. Many are resolved through negotiation, mediation and a negotiated buyout or exit. Court is a backstop, and it is often in everyone's interest to settle before the dispute erodes the value of the business.

Accreditations and awards

Talk to a shareholder dispute solicitor

Tell us about the business, the agreements in place and where the relationship has broken down. Your enquiry is confidential, and we will put you in touch with the right person.

Offices

Our offices

Our dispute resolution team works from our offices across the Midlands. Every office can take your enquiry.
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