Disagreements between shareholders and the company, or between shareholders themselves, can be time-consuming, costly, not to mention destabilising for the business as a whole.In recent times, shareholders have found an easy path to activism through social media and ease of communication and contact.
Our team is used to working with the warring entities to achieve the best result that allows companies to carry on trading with minimum disruption, where possible. We advise on:
- Unfair prejudice
- Derivative actions
- Disputes between shareholders (including minority shareholder squeeze out/buy out procedures)
- Removal of shareholders
- Shareholder and investor activism.
Examples of work
We have advised:
A global technology company on a substantial claim brought by a shareholder in relation to the sale of his 50% shareholding (allegedly under duress)
- An investment fund on an unfair prejudice petition brought by shareholders, and subsequent claim against the company's directors for breach of duty
- Shareholder activists on bringing about change in connection with breaches of the AIM Rules
- On a dispute between two shareholders of a joint venture company and the shareholder's options for exiting the joint venture, including the exercise of buy-out provisions
- On alleged misappropriation of monies by former director to himself and a Dubai-based corporate vehicle through a letters of credit scheme
- An AIM-listed Isle of Man incorporated investment company in a shareholder dispute arising out of the shareholder's purchase of $60 million convertible preference shares issued by the company
- On a dispute between two shareholders in a joint venture agreement with one partner seeking a buyout order due to unfair prejudice caused by being shut out of the business.