Shareholder Disputes
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Shareholders Agreements: Disputes

When business ventures go wrong, common law rights and Model Articles are not adequate to protect against the fallout since they simply do not deal with fundamental business issues, the method of resolving deadlock situations or mechanisms to force a sale of shares, for instance when a shareholder ceases to be an employee of the company.

Unless the shareholders are properly protected under a shareholders agreement, the fallout can be expensive, time consuming and extremely detrimental to the business, leaving shareholders with little or no return on their investment. A company can also be left in an unenviable position of having to retain shareholders who are not active in the business.

Therefore it is essential that the company be regulated by a shareholders agreement to protect shareholders' investment.

Shareholders agreements are legally binding contracts which govern the relationship between shareholders in a private limited company.

A shareholders agreement will impose personal responsibility and liability on the individual shareholders and therefore should not be entered into without careful consideration.

A shareholders agreement is confidential, and, unlike the Articles of Association of a Company, is not available for inspection by the public at Companies House.

Visit our directors dispute website.
Visit our shareholders dispute website.