Shareholder Disputes?

Introduction

Disputes between shareholders arise for a number of reasons. One of the most common reasons is where a previously good relationship turns sour. There may be a dissident shareholder who refuses to co-operate in the running of the business and who hampers the decision – making process. A shareholder or a group of shareholders may want to expel such a shareholder in order to resume the smooth running of the company. This article will outline the options available to members when attempting to resolve a dispute and examine the various remedies available to minority shareholders.

It is always advisable for members to have a shareholders agreement to clarify issues that may arise and make provision for dispute resolution. However, it is not uncommon for companies to overlook the need for such an agreement.