Company & Shareholder Contract Disputes

Being in business can regrettably involve becoming embroiled in a business dispute, be it a commercial dispute with another business, a dispute between shareholders or directors in the same business or following insolvency.

We assist companies, partnerships, and sole traders with cost effective and proactive advice with the aim of resolving disputes as quickly and cheaply as possible.

What Are Company and Shareholder Disputes?

Company and shareholder disputes can arise at any stage of business, from start-up through to expansion. So what can you do to handle or even prevent these disputes?

These disputes often involve disagreements between shareholders, directors, partners, or third parties. Such conflicts can become particularly challenging when they involve minority shareholders and may escalate into formal proceedings, such as an unfair prejudice petition under section 994 of the Companies Act.

As experienced company dispute solicitors and shareholder dispute solicitors, we understand how disruptive these issues can be to day-to-day operations. Our role is to offer practical solutions that protect your legal and financial interests while preserving business continuity wherever possible.

Common Types of Company Disputes We Handle

At BBS Law, our commercial litigation solicitors in London regularly act for business owners, directors, and shareholders involved in a wide range of disputes. These include, but aren’t limited to:

Shareholder disputes: This includes the likes of breach of shareholder agreement or unfair exclusion of minority shareholders.

• Director disputes: This is often allegations of misconduct, breach of fiduciary duties, and disputes over company management.
• Partnership disputes: Often where disagreements arise between partners regarding profit share, management, or exit rights.
• Contractual & Commercial Disputes: This occurs between businesses or involving third-party suppliers.
• Deadlock situations: This happens when no effective resolution mechanism exists in the shareholder agreement or articles of association.

Our clients range from start-ups to large scale corporations, and we are frequently instructed on high-value matters.

So if you’re finding yourself in one of these common legal positions, get in touch to find out how we can help you build your case.

Alternative Dispute Resolution for Businesses

While some company and shareholder disputes require us to take matters to court, we aim to resolve matters through alternative dispute resolution (ADR) wherever appropriate. This includes:

• Mediation
• Negotiation and Settlement
• Arbitration

As dispute resolution solicitors in London, we tailor our approach depending on the nature and complexity of the matter.

If ADR does not achieve the desired outcome, we are fully equipped to pursue or defend litigation through the courts as experienced commercial dispute solicitors.

What We Do at BBS Law

We have significant experience of assisting clients with all aspects of the various type of commercial disputes that arise in the course of business. A significant part of our work involves assisting businesses with a wide variety of contract disputes, dealing with issues ranging from debt recovery to disputes regarding contractual terms and enforcement.

We have particular expertise is dealing with company and partnership disputes, including disputes between shareholder, minority shareholder disputes, company valuation disputes and claims involving directors. We assist directors in claims brought arising out of the insolvency of a company, including disqualification proceedings.

We also actively encourage early and commercial settlement of disputes by way of a number of dispute resolution methods including a particular expertise in mediation.

When Would You Need A Solicitor for Company Disputes?

There are a range of instances where in business dispute solicitors assist in the resolution of issues.

Dealing with them comes in different ways, for instance if the dispute is with a third party, effort should be made to engage with the other party to try to resolve matters, failing which commercial dispute solicitors can be instructed to write a letter of claim or similar communication.

There is also common instances such as directors disagreements, in this case, how such matters are resolved should be set out in the Company’s Articles of Association and/or a Shareholders Agreement. In the event of a “deadlock”, ultimately such disputes can only be resolved through court proceedings.

While it can get to stages of litigation, it is in the interest of all involved to settle a dispute without the need for court proceedings. Typically, disputes can be settled at without prejudice meetings or at more formal mediations; if you’re unsure on where you stand with company disputes, get in touch with us for some assistance and read our FAQs below for further information.