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Director and Shareholder disputes

Duncan Lewis Litigation Solicitors – Director and Shareholder disputes


Directors of companies have certain obligations under the Companies Act – and where a shareholder is in dispute with a director or other shareholders, a claim may be brought.


Disputes between directors and shareholders can occur for any number of reasons, but frequently conflict of interests (eg if a director has a conflicting business interest) or disagreement over the management or direction of a company can soon lead to a breakdown in relationships.


Resolving director and shareholder disputes often centres on what is set out in the Shareholders’ Agreement or a company’s Articles of Association.


Duncan Lewis can advise on settlements for outgoing directors and employment contracts for directors – as well as advising on settlements for shareholders who have brought an action for recovery of their investments.


Under the Companies Act, individuals such as directors, partners or shareholders are protected from prosecution unless they have committed illegal activities while in office – for example, fraud or false accounting. This is usually referred to as protection under the “corporate veil”.


Duncan Lewis commercial litigation solicitors can advise at any stage of a director and shareholder dispute, including advising on Shareholder Agreements and the terms of Articles of Association – as well as advising on matters where illegal activity has occurred and prosecution of individual directors is a possibility.


In cases of director and shareholder disputes where prosecuting authorities have launched an investigation, Duncan Lewis litigation solicitors are able to attend interviews under caution and negotiate with authorities such as Insolvency Service, SFA, HMRC, BIS, SFO and City of London Police.


The Duncan Lewis commercial litigation team can also advise on disputes involving partnerships and LLPs, including resolving partnership disputes by agreement or technical dissolution.


Duncan Lewis commercial litigation solicitors are also able to advise on winding up petitions, removal of a company director and negotiating the conditions in disqualification of a director, where illegal activity has occurred – as well as settlements for directors who have been made redundant or may have a claim for compensation after dismissal.


It is important to seek legal advice as soon as possible in the event of a director and shareholder dispute – director and shareholder disputes cannot only affect an individual director, but also company reputation and share value.


Duncan Lewis can advise at any stage of a dispute – including advising on the potential for dispute within the terms of a shareholders’ agreement or company Articles of Association.


For expert legal advice on company and commercial law and Director and Shareholders Disputes, call Duncan Lewis Commercial Litigation Solicitors on 0333 772 0409.


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