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How can a dispute arise?
There are many different reasons why a dispute may arise between directors, shareholders or partners of a business. These include:
- Misconduct – a partner may wrongfully exercise their lawful authority, fail to perform an act they are required to do by law, or even behave rudely or aggressively towards others
- Breach of duty – a fellow partner may act in breach of an existing fiduciary obligation they owe to the business, especially if they are a director
- Collapse of a professional relationship – partners may have a disagreement in, or outside of, the business that results in a complete breakdown of their working relationship
- Lack of involvement – it may become clear that another partner spends most of their time away from the business and shows a lack of interest in promoting its success
Some businesses can refer to a partnership agreement to determine the procedure to follow to resolve the dispute.
However, sometimes it cannot be resolved by a written agreement and the parties involved may need legal intervention.
Choosing the appropriate director dispute solicitors can achieve the result you want.
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How specialist director dispute solicitors can help
At Freeman Jones Solicitors, we specialise in areas of partnership relations and disputes including:
- Breach of fiduciary/directors’ duties – these duties are specified in the Companies Act 2006, and include acting only within the powers granted by the company and promoting the company’s success
- Partnership agreements – a written agreement published between members of a partnership which sets out the actions, rights and powers of each partner
- Derivative action (in situations where a director is reluctant to or incapable of rectifying a wrong that has been committed) – these are claims which are brought by one or more shareholders of the company against a director if it is believed they have committed a wrong against the company
- The rights of shareholders and directors – both are separate entities within a company with different rights
If you wish to discuss any of the above matters, then contact us to arrange a free no-obligation consultation with one of our director dispute solicitors.
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