Shareholder disputes can disrupt even the most successful businesses. Whether you’re a minority shareholder facing unfair treatment or a majority shareholder dealing with a breakdown in trust, early legal advice is essential to protect your interests and preserve company value.
Our experienced shareholder dispute solicitors help clients resolve complex disputes quickly, commercially and—where possible—without going to court.
Get valuable insights from our articles.
Find answers to your most pressing questions about our services and processes.
Your rights as a shareholder will depend on the number and class of shares you hold, as well as any shareholders’ agreement or the company’s articles of association. In general, shareholders have the right to: Receive notice of and vote at general meetings Receive dividends (if declared) Inspect certain company documents Be treated fairly and not have their shareholding unfairly prejudiced Minority shareholders also have specific legal protections where the majority act unfairly or in breach of duty.
Yes. If you are a minority shareholder and the majority are acting in a way that is unfair or prejudicial to your interests, you may be able to bring an unfair prejudice petition under the Companies Act 2006. Common examples include exclusion from decision-making, unfair allocation of dividends, or diluting your shareholding without consent.
An unfair prejudice claim is a legal action brought by a shareholder where the company’s affairs are being conducted in a way that unfairly harms their interests. The court has wide powers to resolve the situation — the most common outcome is that the majority shareholder is ordered to buy the minority’s shares at a fair value.
Where two equal shareholders (e.g. 50:50) are in deadlock and cannot agree on how the company should be run, the business may become unworkable. Solutions may include negotiation, mediation, one party buying out the other, or — in extreme cases — winding up the company. We can advise on your options and protect your position during negotiations.
Only in limited circumstances. Typically, this will depend on the terms of the shareholders’ agreement or the company’s articles of association. Some agreements include “drag-along” or “buy-back” provisions that may be triggered in a dispute. In other cases, court intervention may be needed.
As a shareholder, you have limited rights to access certain company documents — including the register of members, minutes of general meetings, and shareholder resolutions. If you’re being denied access or suspect misconduct, we can advise you on next steps and possible legal remedies.
