Director and Shareholder Disputes

Minority Shareholders

Most business in England and Wales are run as private limited companies. Frequently, the same people within the company will be directors (or have another central role), as well as being shareholders.

If you are a minority shareholder in a company, you face a unique set of challenges to protect your interests in the company. We have the experience and expertise to assist you.

Directors in a company have a series of duties they must adhere to, including acting in the interests of the company as a whole. Actions by directors that favour one group of shareholders over another, are open to challenge by you as a minority shareholder, with the director potentially being personally liable.

As a minority shareholder you also have the chance to act on behalf of the company itself against acts or omissions of the directors that cause harm to the company. Such actions are known as derivative claims.

Under s994 of the Companies Act 2006, a procedure known as a minority shareholders petition, allows minority shareholders to ensure that they obtain a fair value for their interests in a company, if the actions of that company can be shown to be unfair and prejudicial to the interests of the minority shareholder. See our article HERE

If you were a director and shareholder of a company and have been removed as a director without  your agreement, or if you simply own shares in the company that is being run in a way that you do not agree with, getting early advice to protect your interests is essential.

We have the experience and expertise that can assist you in getting the best possible result from any situation you face. Please contact us.