Business disputes can be costly, distracting and disruptive. They can be particularly difficult when the disagreement is between shareholders, directors, business partners or people who need to continue working together.
At WSP, our business dispute solicitors help business owners, companies, shareholders, directors and partners understand their legal position and find a practical way forward.
We can advise on disputes arising from commercial relationships, contracts and the management or ownership of a business. Our approach is focused on the outcome you need, the value at stake and the wider commercial implications of the dispute.
Where possible, we will explore ways to resolve matters through negotiation or alternative dispute resolution. Where formal proceedings are necessary, we can help you protect your position and pursue or defend a claim.
Speak to our business dispute solicitors in Gloucester and Stroud.
To get in touch with our Business Disputes team you can use the contact form on this page, or reach out directly by clicking here. Alternatively, you can call us on 01453 847200.
How can our business dispute solicitors help?
We can advise on business disputes including:
- Shareholder disputes
- Disputes between directors
- Partnership disputes
- Breach of commercial contracts
- Supplier disputes
- Customer disputes
- Payment disputes
- Disputes over goods or services
- Contract termination
- Misrepresentation
- Commercial property disputes
- Commercial landlord and tenant disputes
Whether a dispute is between two businesses or between the people who own and manage the same business, getting advice early can help prevent positions becoming entrenched.
Shareholder disputes
Disagreements between shareholders can threaten both the operation and value of a company.
A dispute may concern how the company is being managed, the conduct of another shareholder or director, how money is being taken from the company, a disagreement over strategy, or the future ownership of the business.
We can advise shareholders and companies on disputes involving matters such as:
- Breakdown in relationships between shareholders
- Minority shareholder disputes
- Disagreements over the management or direction of a company
- Alleged unfair treatment of a shareholder
- Breaches of shareholder agreements
- Disputes concerning voting and decision-making
- Dividends and distribution of company profits
- Access to company information
- Transfers or sales of shares
- Valuation of shares
- Exit arrangements
- Disputes following the departure of a shareholder
- Deadlock between shareholders
The first place to start will often be the company’s articles of association and any shareholders’ agreement, alongside the relevant company records and correspondence.
The legal position is important, but so is the commercial reality. In many shareholder disputes, the objective is not simply to establish who is right. It may be to agree an exit, facilitate a share purchase, change the way the company is managed or find a way for the parties to continue working together.
What can I do if I am being treated unfairly by the other shareholders?
Shareholders have a range of potential rights and remedies depending on what has happened.
In serious cases, a shareholder may need advice about whether conduct affecting them amounts to unfair prejudice under section 994 of the Companies Act 2006.
However, court proceedings are not the only potential route.
Before determining what action is appropriate, we can review the company’s constitutional documents, ownership arrangements and the conduct complained about and help you identify the outcome you want to achieve.
→ Speak to us about a shareholder dispute
Disputes between directors
Disputes between directors can be particularly damaging because they can prevent a company making decisions and affect employees, customers, suppliers and shareholders.
Problems can arise over:
- The strategic direction of the company
- Decision-making and authority
- Financial management
- Conflicts of interest
- Alleged breaches of directors’ duties
- Removal of a director
- Access to information
- Remuneration
- Competing businesses or interests
- Deadlock between directors
- The departure of a director who is also a shareholder
- Conduct which one director believes is damaging the company
Director disputes can also overlap with shareholder disputes where the same individuals both manage and own the business.
That can make the legal position more complicated. A person’s rights and responsibilities as a director are not necessarily the same as their rights as a shareholder.
Taking advice early can help establish those different positions and identify whether the dispute can be resolved before it begins to affect the wider business.
What happens when two directors cannot agree?
That depends on the company’s ownership, articles of association, any shareholders’ agreement and the nature of the decision being disputed.
A 50/50 company can face particular difficulties where two owner-directors no longer agree because neither side may have sufficient control to resolve the deadlock alone.
Potential solutions will depend on the circumstances, but the commercial objective might include:
- Agreeing how the business will operate going forward
- Negotiating one person’s departure
- Agreeing the purchase or sale of shares
- Bringing in an agreed decision-making mechanism
- Resolving specific financial or management disagreements
- Pursuing formal remedies where agreement cannot be reached
We can help identify the legal options and negotiate towards a commercially workable outcome.
Partnership disputes
A disagreement between business partners can put the future of the entire business at risk.
Partnership disputes can arise over:
- How the business is being run
- Money being withdrawn from the business
- Profit sharing
- Partnership accounts
- Individual partners’ responsibilities
- Decision-making
- Allegations of misconduct
- A partner wanting to leave
- Removal or expulsion of a partner
- Introduction of a new partner
- Ownership or use of partnership assets
- Dissolution of the partnership
- What happens to the business after a partnership ends
We can review the partnership agreement and circumstances of the dispute to help determine each party’s legal position and the options available.
Where there is no written partnership agreement, the legal position can become particularly important and statutory partnership rules may apply.
Can a business partner be forced to leave?
Not necessarily.
The answer will depend on the structure of the business, the partnership agreement where one exists, and the circumstances.
Trying to remove a partner without first establishing whether there is a legal right to do so can create further problems.
If the relationship has broken down, we can help you assess whether the better solution is continued partnership under revised arrangements, a negotiated exit, purchase of an interest, dissolution or another form of settlement.
Contract and commercial disputes
Business disputes do not always involve the owners of the same business.
We also advise on disagreements between businesses concerning:
- Commercial contracts
- Suppliers
- Customers
- Payment
- Goods and services
- Contractual performance
- Contractual terms
- Termination
- Misrepresentation
Where the central issue is whether an agreement has been breached, our dedicated Contract Dispute Solicitors page provides more information about bringing or defending a contractual claim.
→ Contract Dispute Solicitors
Can a business dispute be resolved without going to court?
Yes. Court proceedings are not the only way to resolve a commercial dispute.
That is particularly important where the people involved own the same company or business.
A successful resolution may need to do more than determine who is legally right. It may need to establish how people can continue working together or allow somebody to leave the business on agreed terms.
Depending on the circumstances, options can include:
Negotiation
Direct negotiation between solicitors can help identify whether there is sufficient common ground to reach a settlement.
Mediation
An independent mediator can help the parties explore a mutually acceptable resolution.
This can be particularly useful in shareholder, director and partnership disputes because the parties can explore practical commercial solutions rather than leaving the final outcome entirely to a court.
Court proceedings
Sometimes formal proceedings are necessary to protect a business or an individual’s interests.
Where litigation is appropriate, we can advise you on the potential remedies, risks and costs before proceedings are started and support you throughout the process.
How do we decide whether a business dispute is worth pursuing?
Having a legal argument does not automatically mean litigation is the best commercial decision.
We will help you consider:
- The outcome you want
- The financial value at stake
- The strength of the available evidence
- The value and future of the business
- Legal costs
- The effect on employees and customers
- Your continuing relationship with the other parties
- Management time
- Reputational considerations
- Whether a negotiated exit or restructuring could resolve the problem
- The likelihood of recovering money if you succeed
Our role is to help you find a solution that makes sense commercially as well as legally.
What should I do if a business relationship is breaking down?
Take advice early, particularly before making significant decisions.
Depending on the dispute, useful documents can include:
- Shareholders’ agreements
- Articles of association
- Partnership agreements
- Companies House records
- Board minutes
- Shareholder resolutions
- Commercial contracts
- Employment or service agreements
- Financial records
- Relevant emails and correspondence
- Notices already served
- Details of offers or proposals already made
Avoid deleting relevant communications or making decisions about removing another shareholder, partner or director before understanding the legal implications.
If proceedings have already been issued or you have received a formal legal notice, tell us about any deadline immediately.
Speak to our business dispute solicitors
If a disagreement between shareholders, directors or partners is beginning to affect your business, getting advice early can help you understand the legal position before the relationship deteriorates further.
The same applies where your business is involved in a dispute with a customer, supplier or another organisation.
Our dispute resolution solicitors advise businesses and business owners from our offices in Gloucester and Stroud or remotely nationwide.
Tell us what’s happening and what you want to achieve. We’ll help you understand the options available.
To get in touch with our Business Disputes team you can use the contact form on this page, or reach out directly by clicking here. Alternatively, you can call us on 01453 847200.