Internal Disputes

Internal Disputes can Jeopardise the Future of the Company

Mergers or acquisitions are all too common in the competitive corporate world these days. Top-notch commercial lawyers can help you get a good price for your shares in case the company is bought over. Most shareholders tend to lose their bargaining power because they wait for too long to take action. However, reliable legal counsel can help you get a good price for your shares. Any corporate business is only as good as its members; any conflicts or internal disputes over important matters can result in far-reaching adverse consequences for the business.

If disputes are not resolved in the right way, the business may be rendered bankrupt or insolvent. Everything that the partners and employees have worked for is likely to be lost in a maze of courtroom battles and legal wrangling. Business disputes could include several different types of conflicts such as shareholder disputes, disagreements over business evaluation, mergers and acquisitions.

Shareholders, for instance, should ensure that they get a good price for their shares in the event of a merger. It’s a much better idea to resolve such disputes outside of court in order to reduce costs, time delays and overall stress. In fact, the threat of a looming court battle can disrupt the daily business of the company and demoralise workers and management. Professional legal advice can help promote focused and rational negotiation and communication. In the absence of a shareholders agreement, special business lawyers can help you understand how the law will apply to your unique situation.

Shareholder disputes may arise if the shareholders feel that the company has not acted in their best interests. They are well within their rights to seek legal recourse to resolve their issues. Some of the most common reasons for shareholder disputes include:

  • Disagreements between major and minority shareholders
  • Breaches of fiduciary duties or violation of the shareholder agreement
  • Disputes over share price evaluation
  • Oppression of minority shareholders
  • Underperforming directors or shareholders

Experienced legal experts can help you pursue legal remedies for unfair treatment or against prejudicial action by majority shareholders and directors. Many times, internal business disputes may seem small and inconsequential but if left unresolved, they can potentially escalate into major disagreements. It’s important to seek the services of lawyers who are able to provide guidance specific to business law.

Moreover, seeking legal guidance can help members, shareholders and officers understand their duties and responsibilities clearly. Taking proactive steps to resolve an issue can help de-escalate a tense situation and prevent relationships from becoming more strained. Keep in mind that failure to adhere to the terms of the shareholder agreement can result in further charges of misconduct or even fraud.

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