Partnership Disputes
Fostering positive outcomes in Partner Relations
Disputes amongst shareholders are an inevitable part of doing business and can occur for many reasons, such as a disagreement about business direction or the division of labour; allegations of unfair dividends being paid to certain parties; or one shareholder attempting to force another to sell their shares.
Such disputes can be particularly disruptive, as they often impact a company’s productivity, and in some cases (especially in small businesses) can bring company decision-making to a complete standstill.
Often, a shareholder agreement or company constitution will set out the company’s preferred method for dealing with disputes that arise between shareholders, but they do not always guarantee a quick resolution and many companies do not have them. Where a company has neither a shareholder agreement nor a company constitution, the Corporations Act will provide guidance for managing a dispute between shareholders.
Obtaining legal advice at an early stage will enable your business to resolve the dispute quickly and cost-effectively. Our team aims to provide the most cost-effective results in the quickest time possible through the use of alternative dispute resolution processes such as negotiation, mediation, and arbitration. However, where litigation is necessary, we have the experience and expertise to take your matter to hearing.
Whether you are involved in a shareholder dispute or believe that one is imminent, contact Dormer Stanhope and we will help you gain an understanding of your options for resolving the disagreement as expeditiously and cost-effectively as possible so the business can return to full productivity.