In the initial stages of starting your business, you and your shareholders or partners have most likely drafted a shareholder agreement in which all the rights of each individual are stated as well as the responsibility and the provisions for managing and running the business. Your shareholder agreement may also have an arbitration provision that clearly states that all parties must settle any shareholder dispute outside the court; disputes that may arise in the event when a shareholder leaves the company or the business dissolves.
At some point, this may seem like a sensible thing to do, after all, why would anyone want to take matters to court when it can be resolved amongst yourselves peacefully. However, if you are a minority shareholder, it may be preferable for you to settle your dispute in the court instead of settling in the arbitration panel. This is because the court can grant you injunctive relief and your rights will likely be more protected in court than outside.
Now, you may have been told by a solicitor that if the shareholder contract includes an arbitration provision, you can’t do anything about it. However, this is least the case. If the arbitration provision is not defined or drafted properly, you have a chance to object to it and take your case to the court to settle things properly.
At Alfred James & Co Solicitors LLP, we have experienced shareholder disputes solicitors in Croydon, who can help you surmount the arbitration provision barrier and take your shareholder dispute to the court in the UK. Our experienced lawyers have the skills and knowledge necessary to make sure your rights and interests are preserved and protected.
If you are facing a shareholder dispute in the UK, please don’t hesitate to contact us immediately. Call 020 8681 4627