Disputes between shareholders and directors are common place and can take shapes of varying degrees and scope. They often involve disagreements with respect to control over the direction, management or operation of a business, access to the company's books and records, declaring dividends and breaches of fiduciary duties, just to name a few.
Depending on the circumstances and the overall commercial objectives of the shareholders and directors involved, there are various ways to address and resolve shareholders and directors' disputes. These include:
- through the terms of a Shareholders' Agreement;
- bringing oppression proceedings;
- bringing a derivative action; and
- other redress under the Corporations Act 2001 (“Corporations Act”).
