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Director and shareholder disputes

Individuals can find themselves involved in a business in a number of capacities, be it as a shareholder, director or an employee of the company. Frequently, there will be multiple shareholders and directors of the company.

Unfortunately, having multiple stakeholders can often lead to conflict between competing interests. These can range from disagreements regarding the day-to-day running of the business, to major financial decisions.

What rights do I have?

There are a number of factors that need to be considered in any dispute. As a shareholder, you will have numerous contractual rights (set out in the company’s Shareholders’ Agreement) and statutory rights.

As a director, you will have various contractual duties (set out in your Director’s Service Agreement) and statutory duties.

In addition to the above, you will also need to consider any employment rights that the relevant parties may have.

Further information

Any dispute is likely to prevent the business from operating as efficiently as normal, so by seeking legal advice early, you can limit any damage caused to the business and reach an early settlement in an amicable way, before the relationship breaks down irrevocably.

For straightforward and practical help and advice, speak to our commercial lawyers in Bristol and South Gloucestershire on 0117 905 9763 or complete our online enquiry form.

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