Director and Shareholder Disputes (Employment)

Director and Shareholder Disputes

The UK left the EU on 31 January 2020. A transition period, during which EU laws continue to apply in the UK, is due to end on 31 December 2020. The UK/EU Withdrawal Agreement sets out transitional arrangements and negotiations for the future UK/EU relationship are ongoing.

The globalised marketplace brings with it an increasingly demanding regulatory framework for directors to navigate. Good corporate governance, transparency and accountability are key, together with having the right people at their helm. Directors need to understand their duties and potential exposure. 

Those owning and running private businesses (whether companies or LLPs) face many of the same issues as directors of listed companies. Weak corporate governance, whatever the size of the entity, can lead to public, legal or regulatory challenges. These are bad for business and damage reputations. Directors may be personally liable if they fail to meet their responsibilities. Family businesses, despite all good intentions, are especially vulnerable. We have seen too many examples where success is undermined by personal acrimony. Running a business on a hitherto informal/ad-hoc basis then threatens everything: growth, external investment and succession planning.

Our team of specialist contentious and non-contentious lawyers offers advice tailored to the specific needs of the stakeholders in any business. As a result, directors, shareholders, partners and owner-managers can work together and without fear of what the future may hold. We can assist with day-to-day operational activities, such as drafting agreements, and advising on ever-changing and expanding powers, duties and liabilities of directors. We can help to audit and transform existing corporate governance practices, to make sure that the directors are fulfilling their obligations, and to identify and fix issues before a challenge is made. If there is a dispute between the stakeholders (for example, around partnership or shareholding) or from outside (such as regulatory or governmental action), we can help resolve these issues speedily and practically. In the same way, we can anticipate and head off potential disputes.

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