Director Dispute Solicitors
Practical Solutions for Resolving Boardroom Disputes
Common Causes for Director Disputes
Director disputes can occur for a number of reasons, but often include disagreements over business strategy, financial matters, conflicts of interest, allegations of misconduct or breach of duty, and contentious issues relating to remuneration or the appointment or removal of a director.
Typically, businesses have an ‘Articles of Association’ which govern a company’s internal affairs and directors have a fiduciary duty to the business. However, all directors involved in the dispute may believe that they are acting in the best interest of the business. This is where our dispute resolution team will provide effective solutions.
Our experienced lawyers and alternative dispute resolution (ADR) specialists work to resolve contentious matters quickly and achieve mutually agreed outcomes, enabling all parties to move forward. However, should litigation become necessary, you can trust our award-winning team to represent you with expertise and care.
Why Choose Us
Whilst there may be similarities to ‘reported case authorities’ each dispute between directors is unique and needs to have specific assessment and considerations undertaken. For this reason, we adopt a bespoke approach to every case, ensuring that our guidance is aligned with the specific circumstances of your dispute.
Additionally, we understand that the financial consequences are often a concern for clients involved in a business dispute. We are therefore transparent about our fees and where it is possible to do so, we will offer an agreed fee for each stage of work as this assists with the budgeting that will be needed as the matter progresses. As a litigation only practice, our view is that litigation should be a matter of last resort. Consequently, our team provides clear guidance on assessing the commercial benefit of litigation compared to alternative dispute resolution or a negotiated settlement. This enables our clients to weigh their options and make informed decisions that align with their financial objectives.
Contact us for a confidential consultation where our experienced lawyers offer expert legal advice and help you navigate and resolve any business or commercial disputes.
For further information regarding boardroom and director disputes, please see our Frequently Asked Questions.
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Understanding Director Disputes FAQs?
Contact KANGS
The expert lawyers at KANGS are available to assist you. We can arrange initial consultations in person, by video call or telephone.
Please contact one of our experts listed below or contact us at:
What are fiduciary duties?
In short, fiduciary duties govern the conduct of company directors. There are seven statutory duties, derived from common law rules and equitable principles in their application, in relation to the duties owed to a company director.
The Companies Act 2006 sets out the ‘General Duties of Directors’ which form the foundation of what it means to be a company director.
Under sections 171 to 177 of the Companies Act 2006, a director must:
- act within powers for which they are conferred
- promote the success of the company
- exercise independent judgment
- exercise reasonable care, skill and diligence
- avoid conflicts of interest
- not to accept benefits from third parties
- declare interest in proposed transaction or arrangement
What is the most cost effective way to settle a dispute between directors?
Alternative Dispute Resolution (ADR) encompasses a range of methods such as mediation that parties may adopt to resolve a dispute. It is generally more cost effective than court-based litigation and disputes tend to be resolved much more quickly.
How can I resolve a 50/50 director dispute?
When company directors cannot reach a majority decision, which tends to happen when there are two equal shareholders acting as directors, there are steps that can be taken to find a resolution.
Directors are usually advised to refer to the company’s articles of association or shareholder agreements, but the reason for disputes are often unforeseeable and unlikely to be an included provision when these were drafted.
If shareholder meetings have taken place and a majority decision cannot be reached, the next step is to seek legal advice. A specialist law firm such as KANGS can help you find a resolution, whether through court litigation or alternative dispute resolution (ADR).
In more extreme cases, options include one of the directors selling their shares and exiting the company or a ‘winding-up,’ whereby the company is dissolved and the shareholders divide the assets.
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