It is common for Shareholders to have minor as well as
major differences in opinions among themselves concerning several
issues such as the company's governance, its processes, or
finances. However, when Shareholders have differences on issues of
major concern, it is often difficult to compromise, thus, having a
negative impact on the company. In some cases, this even brings the
firm to the brink of collapse. In this article, we cover ways in
which Shareholder disputes may be resolved with special emphasis on
the Companies Commercial Law (CCL).
Shareholders are described as Partners in Limited Liability
Companies and Shareholders in Joint Stock Companies. In the
interests of clarity, we adopt the term 'Shareholder' in
this article to address both Partners and Shareholders. It is
important to understand the point of contention and seek an
effective way to mediate disputes where Shareholders have failed to
resolve their differences by applying to the Court to order
