Internal business disputes can be damaging to everyone involved. Often the only viable solution is for one or more parties to leave. However, this can be as painful, both financially and emotionally, as exiting a marriage or any other long term relationship.
With the potential for disagreement and recriminations all too evident, directors, partners, shareholders and members face expensive legal proceedings and, otherwise flourishing and viable businesses may face dissolution or forced winding up.
Business disputes can arise for a broad range of reasons, including:
- Disagreements over strategy, direction and development
- Responsibility for poor financial performance, missed targets or a failure to pay expected remuneration or dividends
- Deteriorating personal relationships caused perhaps by conflicts of interest or lack of communication within the business
For companies, partnerships and LLPs, it is vital that those involved minimise the risk and impact of any disputes as quickly and cost-effectively as possible. To do this, directors, partners, shareholders and members need clear and well thought out legal advice as to their legal position, and the steps they can take to protect their investments and livelihoods.
Why choose Linder Myers?
At Linder Myers, we understand the need to provide practical and commercially sensitive advice in the event of a breakdown of trust or confidence within a business.
With a thorough understanding of company and partnership law and the approach taken by the Courts, we help to resolve disputes quickly, with minimum disruption to the day-to-day running of your business and other commercial interests.
With extensive experience advising board of directors, partners, members, senior management, and shareholders, in each case we strive to either repair the relationship, or achieve a clean break; allowing all parties to move forward.
What remedies are available?
- Prevention is better than cure. Where possible, businesses should seek advice and assistance in setting up agreements and structures to help prevent damaging disputes from occurring in the first place. For example the provision of agreements to help regulate and control disputes, and clear and practical methods for valuing the business and each individual’s interest in it. Often the impact of any fall out can be minimised by properly drafted and well thought out shareholder, partnership and member agreements, employment contracts and effective corporate governance structures and procedures. This should also include proper mechanisms for exit, and the time needed to complete the process without causing unnecessary financial pain or disruption.
- The need to talk. Once a dispute does arise, it is important that a dialogue starts between those concerned as early as possible. This will help all parties to identify and understand the underlying issues and begin to explore the full range of possible solutions. It is vital that everyone involved understands their legal rights and the potential remedies before commencing any steps to resolve the dispute. As such, expert legal advice should be sought as soon as possible.
- Court proceedings as a last resort. Where resolution or agreement cannot be reached, then court proceedings can be initiated by individual shareholders, members or partners to seek assistance in resolving the dispute.
- Achieving a clean break. This often involves agreeing a fair market price for the leaving individual’s interests in the business, allowing all parties to move on.
Our team has an outstanding reputation producing results for clients and has successfully been involved in some of the largest and most complicated shareholder disputes to come before the UK Courts.
In addition, our corporate team provides advice and assistance in setting up agreements and structures to help prevent damaging disputes from occurring in the first place. For example the provision of agreements to help regulate and control disputes, and provide a clear and practical method for valuing the business and each individual’s interest in it.
Contact us today to find out more about how we can help you.Contact us