Shareholder Dispute

Five Tips For Dealing With A Shareholder Dispute As A Shareholder

Companies are run by management structures. These management groups are usually in charge of making large financial decisions. These financial decisions can directly impact a company’s share price, income, and indirectly, the shareholders.

This means that shareholder disputes can arise if the shareholders feel that the company isn’t making good decisions, and that their shares are suffering as a result. In most cases, disputes are opened when a number of large shareholders get together, but they can happen at any time. A good team of commercial lawyers is usually needed to make sure that the disputes are resolved in a timely manner which leaves both parties pleased.

The following five tips can help you, as a shareholder, deal with a shareholder dispute.

  1. Make Sure That You Are Represented By A Good Commercial Lawyer

The key, if you want the dispute to be dealt with in a timely fashion, is to make sure that the shareholder group is represented by a high quality commercial lawyer. Sometimes, this lawyer will be able to sort things out almost immediately, due to their knowledge and expertise when it comes to defusing tense disputes. However, at other times your lawyer will be required to help the shareholder group work through a long and tiring dispute process, but will hopefully be able to help achieve a good result.

  1. Appoint A Negotiator

If the shareholder group mounting the dispute is large, then appointing an independent negotiator can be a good idea. Failing to do this can result in disagreements within the group, and these definitely won’t facilitate a satisfactory resolution.

A negotiator can meet with representatives of the company in question, and can help sort things out. Using one appointed negotiator can help the shareholder group achieve what they want to without arguments and disagreements arising.

  1. Use An Independent Mediator

If the dispute has gone on for some time and neither you nor your team of commercial lawyers has been able to resolve it, it could be time to appoint an independent mediator. Independent mediators are parties who have no interest whatsoever in the situation, and who can therefore make non-biased choices.

While they don’t make any binding decisions when it comes to resolving the dispute, independent mediators can help diffuse a tense situation. They can encourage negotiations, and keep things moving in the right direction when discussions are stalled.

  1. Seek Legal Advice Before Opening A Dispute!

Unfortunately, many companies and shareholder groups jump right into the deep end with shareholder disputes. Often, some simple legal counsel from a team of decent commercial lawyers can fix any problems, and can prevent disputes arising in the first place.