Partnership/Shareholder Disputes

If a dispute arises between shareholders, the first port of call is usually to consider the Company’s Articles of Association. We can advise on your rights, and in appropriate cases advise on an application to Court under Section 994 of The Companies Act 2006 for an order by the court on the ground that the company’s affairs are being or have been conducted in a manner which is unfairly prejudicial to the interests of its shareholders.

Precisely what behaviour is “unfairly prejudicial” depends on the circumstances of each case, but in very general terms it may mean that minority shareholders can apply to the court if the majority shareholders run the Company in a manner that damages the minority shareholder’s position, which usually means the worth of their shareholding, for instance by misusing Company assets.

Examples of “unfairly prejudicial” conduct might be using company assets as their own, or paying remuneration which is far more than could be objectively justified. However the allegations must be specific, it is not enough to allege that a company is being “run poorly”.

We can also help if you require advice relating to a partnership or quasi partnership dispute.

For expert advice and assistance please use our contact page, call us on 01376 513 491 or email