Shareholder disputes

50/50 Shareholder Disputes

Shareholder disputes may occur due to varying factors and need to be handled tactfully. At Heathfield Grosvenor, we assist our clients to resolve issues expeditiously before they escalate further.

As a shareholder, you have a committed interest in the success of your business. Sometimes, however, you and your business partner might disagree on matters concerning your company. If circumstances where there is no shareholder’s agreement in place, it is often the case that neither party can coerce the other to sell shares. We can advise you on your options and put in place an effective strategy.

Director Disputes, Australia

The directors, shareholders, and company are separate legal entities. Whilst shareholders own the company, directors control and manage it. Since there several parties involved sometimes with competing interest, this often leads to friction.

Directors Disputes, Australia may arise, for example, when:

  • Directors disagree
  • A director is in breach of one of his or her fiduciary duties
  • A director commits fraud
  • There is a conflict of interest
  • A dispute arises in relation to remuneration.

How to Remove a Shareholder or Director from a Company in Australia

When it comes to removing a shareholder or director from a company, you must be aware of the terms of any shareholder’s agreement, the compulsory legal processes and the requirements of your company’s specific constitution.

You should seek expert legal counsel to ensure you meet all requirements.

Shareholder Dispute Resolution

There are potentially several methods of shareholder dispute resolution and common issues that arise in connection with the same. These include:

  • Derivative actions
  • Actions based on conduct which constitutes an abuse of power or conduct which is oppressive, unfairly prejudicial or unfairly discriminatory
  • Direct action against directors for breaches of their statutory duties and actions based on improper use of position by directors
  • Actions by minority shareholders to prevent the majority from acting in manner which is would constitute a fraud on the minority
  • Winding up the company on just and equitable grounds
  • Administrative relief for corporate misfeasance
  • Negotiation resulting in one shareholder buying out the other’s shares for a price defined by the court

In addition to specializing in shareholder agreement dispute resolution, we also provide the most cost-effective results in the quickest time possible through the use of alternative dispute resolution, including:

  • Arbitration – an arbitrator is appointed by the court or by the parties if they both agree
  • Mediation – an independent mediator is appointed
  • Negotiation – one of the best methods of coming to an agreement

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