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Shareholders Dispute Resolution Lawyers

Shareholders Dispute Resolution Lawyers

Disputes among shareholders can lead to huge disagreements especially where the parties have not entered into a suitable Shareholders Agreement. Such agreements set up the rules of engagement between majority and minority shareholders and the Directors (who are usually also shareholders) who are in effective control of the company. In many cases the parties will have structured a joint venture or their investment in a business through the vehicle of private limited company. This is usually done for tax reasons and to avoid personal liability for stakeholders. Such arrangements can be viewed by the courts as a “quasi-partnership”, rather than less valuable shareholdings. These kinds of arrangements can become more complicated when shareholders are also employees of the company.

In a case of a normal minority shareholding the value of the shares is not great as a willing purchaser is unlikely to want to pay much for an interest which bestows little control or reward by way of dividend. In contrast a shareholding in a quasi-partnership is equivalent to a percentage share in the equity of the business and is usually worth more to existing shareholders so that they can control more of the company.

Shareholder Dispute Resolution Lawyers Middlesex

When such arrangements break down it is usually the minority shareholders who come out worse as they do not have control of the company or know about its finances and they need to consider making an unfair prejudice application to the Companies Court under section 994 of the Companies Act 2006. One of the issues which the court has to address is such cases is whether a genuine quasi-partnership existed or not, and that can be a hard fought and expensive exercise. In the case of a quasi-partnership the court usually orders one side to buy out the other for a percentage of overall value of the company, as valued by an expert.

If it is not feasible for one side to buy out the other, then the court can order the company to be wound up and any assets distributed after all liabilities of the company have been settled. This is the least satisfactory option as it involves the waste of a huge amount of legal and expert fees which all have to be paid by the parties from their own resources.

Whatever stage you may be at in the development or decline of your relationship with your fellow shareholders the expert shareholder dispute lawyers at The Sethi Partnership Solicitors can help you to resolve matters as quickly and cost effectively as possible with a strategic and pragmatic plan aimed at minimising the expense and delays of court proceedings.

If matters cannot be resolved by negotiation, we can assist you in taking Section 994 proceedings or presenting a winding up petition for dissolution of the company. We can also direct you to expert tax advisers to ensure any arrangement are as tax-efficient as practicable.

Contact our shareholder dispute resolution solicitors in Ruislip, Middlesex today

Please contact us today on 020 3856 8156 or complete our online enquiry form if you wish to discuss shareholder disputes.

Examples of recent cases in which we acted for:-

  • Investors in a restaurant business who acquired less than 50% of the shares of a company without entering into a Shareholders Agreement and were also employed in the business, who achieved settlement after we wrote a letter of claim indicating an intention to make a Section 994 application to the Companies Court.
  • Respondent to a Section 994 application by minority shareholders, which resulted in settlement due to our advice and strategy.
  • Prospective investors in a joint venture in the catering industry who were seeking to acquire a minority shareholding in return for an investment and who need advice on a shareholders’ agreement.
  • Prospective investors in a company who were seeking to acquire preference shares in return for a time-limited investment and who need advice on a share purchase agreement and shareholders’ agreement.
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Litigation, Arbitration & Dispute Resolution

Our professional legal advisors can guide you through challenging disputes and will be there for when you need to win.

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Very happy going with Sethi for our house purchase, the estate agent recommend another firm but they completely messed up the other links in the chain but not Sethi who had their eye on the ball from start to finish. Misbha worked hard to help us get through before the tax deadline and helped explain the various legal issues.You may not get immediate responses but they are professionals and know what their doing - just let them get on!
I cannot praise Malcolm Turner highly enough. He dealt with my mother’s estate, including a complicated trust, in a prompt, efficient and sympathetic manner. From our very first conversation, I knew I could rely on him. He always responded speedily to my emails and patiently answered any queries I had. He went on to deal with two property sales and answered queries relating to my Will. I consider myself very lucky to have found him!
Excellent service for over 20+ years, Malcolm Turner has provided a very professional, prompt and friendly service for our family. He has dealt with 2 property purchases, 3 property sales. A Power of Attorney & a Will. He explains the transactions in a very clear precise manner and his service is extremely quick! Thank you
Cormac, Anna and Misbha were the amazing Sethi team who ensured first, that I got my house sale completed by the June stamp-duty deadline and second, when I bought another one at auction five days later, they managed to get that completed in just sixteen days following the hammer coming down! I was most impressed by the service and attention to detail of this firm on all aspects of the work they did for me. I highly recommend them if you are either buying or selling a home, or dealing with complex issues around title. Top marks. Five stars all round and thank you all very, very much, you are appreciated!
Anna Randall dealt with my move and was outstanding from day one. Always available when I needed advice with prompt responses and without doubt, my move wouldn't have completed in time if it wasn't for her. Cannot recommend highly enough and have already recommended to family and friends
I have been working in the property industry for over 13 years and have to say Anna Randall at the Sethi Partnership is by far and away the best conveyancing solicitor I have ever come across.I cannot recommend her enough. First class service, professional, polite and thorough.
I would not hesitate to appoint Anna again and I would highly recommend her to anyone looking into buying or selling their property. From the start to completion her services were exceptional. Very responsive and she made the journey of buying our first property stress free. It was an absolute pleasure working with her. Thank you Anna for being a superstar and working around the clock to get us into our dream place!
We were very impressed with the way our solicitor Malcolm dealt with our wills. He was very helpful and answered all our questions. He did not give us specific suggestions but helped us make up our own minds with confidence. J+S
Great Service at competitive rates. Mishba Ali was very helpful and prompt all through my dealings with her.All queries were dealt in timely manner and i would recommend her for the professional service provided and thank her for getting my paper work completed in time
We used Sethi Partnership for conveyancing and I would highly recommend Caroline Hornett-White. Caroline is very professional, efficient kept us updated and advised us where we needed through out the process. I have already recommended Caroline and Sethi partnership to my friend who will be looking at conveyancing in the future.
Anna Randall from Sethi Partnership supported in the sale of our house and purchase of our new home. It was clearly a very busy time with the rush to complete before the original stamp duty holiday deadline at the end of March, and can say that Anna was always professional balancing the communication between email and phone, and spending the time to provide advice when required.I have already recommended Anna at The Sethi Partnership Solicitors to family looking to purchase property.
I used the Sethi Partnership for the conveyancing of the sale of my house in Hatch End and was very impressed with the efficient and effective service provided. The firm carried out the sale with little fuss and with minimal input from me. They were also responsive when I had questions. Their fees were in line with their original quote and were reasonable. I have no hesitation in recommending their services.
Anna (in conveyancing) was brilliant and kept me in the loop throughout. She is very experienced and leveraged her knowledge from past cases appropriately, as well as being meticulous in her work. Thank you for all the hard work!
I was assisted by Anna Randall with my flat purchase. It was always very easy to get in contact with her by email and telephone and I received regular updates throughout the transaction. Anna's advice helped me make difficult key decisions regarding my purchase which put me in a much better position as a purchaser.
I'd highly recommend The Sethi Partnership Solicitors and in particular Anna Randall.Anna is extremely professional and most importantly responsive, we had daily call's/emails with updates regarding our sale & purchase.We cant thank you enough.
We instructed Sethi to look after the sale of our house and purchase of a different one. We were very happy with the outcome and welcomed the candid and professional advice offered about various difficulties that arose in the purchase.What stops us from giving 5 stars is that we would have preferred to have had regular updates, even if just to say that nothing had happened, and that some of the documentation we received was hard for us to follow as it was in the form of template drafts that had not been appropriately adapted for our circumstances.However, we would unreservedly recommend the company, and in particular Anna Randall, who took very good care of us throughout.
Anna Randall dealt with my house sale. Very professional and competent, would recommend her to anyone, and use her again in the future. Great service.
Anna Randall you are a star again.... extremely efficient with extensive knowledge, helped our long-winded house purchase/sale proceed to fruition despite all the pitfalls thrown at you by our buyers. Highly recommended and details already passed onto friends who are currently buying property..
We recently sold our beloved house in London right in the middle of the COVID lockdown and restrictions. Anna and team carried out a seamless job with the conveyancing from start to completion. They were responsive and pro-active at all times which was even more important when we were abroad at times. We look forward to working with you again. Thank you!
We were very happy with the way Sethi Partnership helped with the purchase of our new property.Anna was very professional and thorough in her approach which gave us extra piece of mind and security as we knew they had our best interests at heart. Would highly recommend the firm to anyone and will be sure to use them again in the future.
Anna was instrumental in making our house sale and purchase a success! She always seemed to have our best interests at heart and gave sound and timely advice with regards to some very complex matters. Excellent service and we will definitely be using The Sethi Partnership Solicitors again. Highly recommend!
I was pleased with and grateful for Caroline's work on my sale and purchase. Very responsive and provided a professional and efficient service. While other parts of the chain were being slow, Caroline was the sane voice at the end of the phone. Thanks!
We were very happy with the Probate services Malcolm Turner provided us with. He explained everything in the right level of detail and was extremely polite and understanding. The advice he gave us, and the action he took on our behalf lead to a successful conclusion of these matters. I have since recommended Malcom Turner & Sethi Partnership to friend who is now going through Probate with his Mother's estate.
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The Barn House,
38 Meadow Way
Eastcote
Ruislip
Middlesex
HA4 8TB
tel: 020 3974 1576
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