Once a conflict between shareholders arises, it is of
the utmost importance for each party to determine an effective
strategy. Legal proceedings before a court (here: the Luxembourg
courts) are only one of the options.
The following steps represent a non-exhaustive list and should
only be considered for unlisted companies and is focused on
Luxembourg practice:1
1. Check articles of association
The company in question and the relationship between
shareholders will be governed by the articles of association of the
company (hereinafter AoAs), which regulate, amongst others, the
rights and obligations of shareholders. It is thus crucial that
shareholders consult such documents and determine which rights and
obligations they have, including information, governance, and
(forced) share transfer.
