Shareholder Disputes

Disputes between shareholders can significantly impact the operation and success of a business, as well as the return on investment of each shareholder.

Shareholder disputes can arise from a variety of issues, including disagreements over the management of the company, breach of shareholder agreements, conflicts of interest, or unfair treatment of minority shareholders. These disputes can be complex and require careful handling to avoid long-term damage to the business.

If you’re involved in a shareholder dispute, contact Sanicki Lawyers today. Our dedicated team is here to help you navigate the complexities of corporate disputes and protect your interests.

A well-drafted shareholders agreement can prevent disputes from arising by clearly outlining the rights and obligations of each party. Our services include drafting and reviewing shareholders agreements, as well as advice on corporate governance practices.

When disputes do arise, it’s essential to address them promptly to avoid escalation. Our dispute resolution services include:

• Mediation and Negotiation: We facilitate mediation and negotiation between shareholders, aiming to reach a mutually acceptable resolution without the need for litigation.
• Minority Shareholder Protection: We represent minority shareholders in disputes where they may be unfairly treated or oppressed, advocating for their rights and seeking equitable outcomes.
• Director Disputes: We assist in resolving disputes involving directors, ensuring that the best interests of the company are upheld while protecting your rights. 

If a shareholder dispute cannot be resolved through negotiation or mediation, litigation may be necessary. Our services include:

• Court Representation: We provide strong representation and advocate for you in Court, whether you are pursuing or defending a claim. 
• Oppression Claims: We handle oppression claims under the Corporations Act, where a shareholder believes they have been treated unfairly or prejudicially by the majority.
• Winding Up Applications: In extreme cases, we assist with applications to wind up the company on “just and equitable” grounds, where the relationship between shareholders has irreparably broken down.

When disputes lead to a shareholder exiting the company, it’s important to ensure a fair and orderly process. Our services include:

• Valuation and Buyouts: We assist in the valuation of shares and negotiate buyout terms, ensuring that departing shareholders receive fair compensation.
• Exit Strategy Planning: We help shareholders plan their exit strategy, whether through sale, transfer of shares, or other arrangements, minimising disruption to the business.