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Shareholder and Partnership Disputes


Our shareholder and partnership dispute solicitors can cut through the problems to deliver clear, decisive solutions.

Experts in Shareholder Disputes

Our shareholder dispute solicitors are well-equipped to handle the most complex of shareholder and partnership disputes. We fight for your corner with a professional and compassionate approach.

Our dispute resolution solicitors aim to resolve shareholder and partnership disputes in a fair and beneficial manner for our clients.

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With over 30 years of experience. We can help you with your dispute.
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Our Specialisms in Shareholder and Partnership Disputes

Shareholder disputes occur when shareholders disagree. These disputes can have a big impact on a company’s operations and be stressful for the individuals involved.

Shareholder disputes can come to light due to a variety of reasons. Some of the most typical of shareholder disputes include:

Differences in Vision

Disagreements over the future direction or strategy of the business can often lead to disputes between shareholders.

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Dividend Disputes

Disputes can arise when shareholders disagree over the distribution of dividends, especially when all profits have been exhausted by the drawing of excess remuneration.

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Mismanagement Allegations

Severe and repeated mismanagement that leads to significant financial losses for the company can trigger disputes.

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Breach of Director’s Duties

If a director is heavily influenced by their appointing shareholder and fails to exercise independent judgment at board meetings, it can lead to disputes.

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Share Dilution

If shares are allotted to dilute a minority member’s interests, it can cause disputes.

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Types of Shareholder and Partnership Disputes

Shareholder disputes can take various forms, including:

A shareholder can apply to the court for help if the company is being run in a way that unfairly harms their interests.

Shareholders may petition for the company’s winding up on a ‘just and equitable’ basis.

Shareholders can bring a claim on the company’s behalf, known as a ‘derivative action’ in respect of an actual or proposed act or omission involving negligence, default, breach of duty or breach of trust by a director of the company.

Why Use Thomas Harvey?

We use litigation, expert determination, mediation, and negotiation to provide tailored strategies and the best outcomes for our clients.

We understand that our shareholder and partnership disputes can be complex and stressful. Our approach is to provide clear, commercial advice to guide you through the process and achieve a swift, efficient resolution.

We always work with trusted, reliable experts to ensure we have a thorough understanding of your company’s financial situation. This enables our shareholder dispute solicitors to provide accurate, practical advice tailored to your specific circumstances.

Our shareholder dispute solicitors are experienced and highly regarded in this field. We’re tough and uncompromising in fighting for our clients’ interests. But we’re also compassionate and understanding, recognising the emotional toll that such disputes can take on individuals.

Our offices are in Leeds, but we help clients nationwide.

Our Approach To Shareholder and Partnership Disputes

STEP 1
Case Evaluation

We begin with ad etailed assessment of your shareholder dispute to fully understand the issues at hand, your position within the company, and the objectives you wish to achieve. This involves reviewing key documents such as shareholder agreements, articles of association, and relevant correspondence to establish the strengths and merits of your claim.

STEP 2
Diligent Preparation

After an initial assessment, we will carefully prepare your case by building a strong foundation. This may include analysing financial records, identifying breaches of duty or unfair prejudice, considering valuation issues, and seeking expert input where required. We will then develop a tailored strategy aligned with your commerical intersts and long-term goals.

STEP 3
Robust Representation

Once we have a strategy in place, our shareholder dispute solicitors provide representation to ensure you get the best possible outcome. Whether we use negotiation, alternative dispute resolution, or court proceedings, we act assertively and pragmatically to secure the best possible outcome for you and your business.

Frequently Asked Questions

A shareholder dispute is a disagreement among shareholders of a company. These disputes often arise from differences over how the company is run, how profits are shared, or when the terms of a shareholder agreement are not followed.

Common causes include:

  • Differences of opinion over the company’s direction or management
  • Conflicts over dividend payments or profit distribution
  • Breaches of shareholder agreements or company articles
  • Disputes over the sale or transfer of shares
  • Allegations of misconduct or fraud by directors or other shareholders

Disputes can be resolved through many methods, including:

  • Negotiation is a discussion between each party to reach a settlement
  • Mediation involves a neutral third party to enable a resolution
  • Arbitration, a formal process where an arbitrator makes an obligatory decision
  • Litigation, taking the dispute to court, which may be costly and time-consuming

  • Review any of the company’s shareholder agreements and articles of association to understand what you’re entitled to
  • Keep clear records of all communications and decisions linked to the dispute
  • Get professional legal advice to understand where you stand and the options available to you
  • Consider ADR methods before pursuing litigation

A shareholder agreement is a contract between shareholders that outlines their rights and responsibilitieswithin the company and how to resolve a dispute if one were to arise. It helps prevent disputes by clearly defining the terms of shareholder relationships and can provide a framework for resolving issues that arise.

Yes, a shareholder can bring a derivative claim if they believe the directors have acted in a way prejudicial to the company. This claim is brought on behalf of the company, not the individual shareholder, and must show that the directors have acted improperly.

The Companies Court is part of the High Court and deals with complex disputes involving companies, such as shareholder disagreements. It can step in to resolve problems, decide whether someone has been mistreated, and order soluctions to put things right when company rules or laws have been broken.

Unfair prejudice occurs when a shareholder is mistreated or their interests are damaged unreasonably, usually due to actions of other shareholders or directors. The Companies Act 2006 will allow a shareholder to ask the court to get involved and provide a solution if this happens.

Costs can vary significantly depending on the resolution method you choose. Arbitration and mediation are often a more affordable alternative to litigation. It’s essential to consider the potential costs and benefits of each method before proceeding. Find out more about our costs here.

Yes, you can help reduce the chance of future disputes by:

  • Creating a detailed shareholder agreement that clearly outlines rights and responsibilities
  • Keep company documents and agreements up to date
  • Encourage transparent and open communication between shareholders and management
  • Get legal advice before making important decisions that affect the company

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Our approach to handling shareholder disputes involves a thorough evaluation of the case, diligent preparation, and robust representation.

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With over 30 years of experience, we’re committed to delivering exceptional results for you.

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