Running a business with more than one director (particularly if the directors are shareholders as well) can sometimes lead to fallouts. This can lead to disruption, tension and even damage to the company itself. Director Disputes are common, and it is crucial to handle them quickly and sensitively if they arise.
At Thomas Harvey Solicitors, we have over 30 years’ experience helping directors and shareholders navigate internal disputes and protect their business.
What are the Common Causes of Director Disputes?
Disagreements between directors can stem from a wide range of issues, including:
- Differences in strategic direction
- Mismanagement allegations
- Breach of fiduciary duties
- Financial disputes
- Unequal workloads or pay
- Breakdown in trust
What are The Legal Duties of a Director?
Under the Companies Act 2006, directors have a range of statutory duties, including obligations to:
- Act correctly and follow the company’s principles
- Promote the success of the company for the benefit of its shareholders.
- Exercise independent judgment.
- Avoid conflicts of interest.
- Not accept benefits from third parties.
- Declare any interest in proposed transactions.
When a dispute arises, understanding these duties is key. A breach can lead to serious outcomes, including personal liability, removal from office, or court proceedings.
How Can We Help?
Our team acts for directors, shareholders, and companies of all sizes, providing advice on issues such as:
- Director and shareholder fallouts
- Breach of directors’ duties
- Unfair prejudice claims under section 994 of the Companies Act 2006
- Deadlocked board situations
- Removal of directors
- Misuse of company assets or confidential information
If you’re facing a dispute with a director, get in touch with our experienced team today on 0333 004 0272, fill out our contact form here or book a FREE initial consultation here.
