Disputes between shareholders can arise for many reasons. Often, the background to these disputes concerns the day to day running of the business of the company.
This can be in a number of ways, such as the dividend policy adopted by the company, the exclusion of the minority shareholders from the running of the company, or the diversion of assets and/or opportunities away from the company.
It is common for such disputes to manifest themselves in the minority shareholder complaining about the conduct of a majority shareholder. This can result in the minority shareholder bringing a claim for unfair prejudice under section 994 of the Companies Act 2006 (previously s459 Companies Act 1985).
If unfair prejudicial conduct can be established, the court has a wide discretion to order a number of outcomes. A common outcome is the majority shareholder being ordered to acquire the shares of the minority shareholder at a fair value. This can lead to further disputes as to how a fair value is achieved.
At Lupton Fawcett, we are aware that such disputes can be complex and result in attention and money being diverted away from the running of the company's business.
Whether we are representing the majority shareholder, the minority shareholder or the company in such disputes, we strive to achieve an efficient, commercial and sensible settlement for the party that we represent. If a settlement isn't possible and a shareholder dispute has to be referred to the courts, we have the experience and specialist knowledge to ensure that our client's best interests are maintained at all times.
We provide advice on a wide range of legal issues to clients around Yorkshire and beyond from our offices in Leeds, York and Sheffield. For an initial discussion about your case, contact one of our specialist solicitors today.
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At last it is all at an end, and we are happy with the outcome. We would like to thank you and the team for giving control back to our lives, god knows where we would be, also for your professionalism and counselling to guide us through this horrendous ordeal we do thank you, it was worth every penny.David Haywood, Former Minority Shareholder in Haywood and Padgett Limited