Companies are often managed and grown by more than one shareholder. However, different ideas, interests and objectives can lead to disagreements between shareholders. Shareholder disputes can arise over a wide range of issues, from the management of the company to the transfer of shares. Such disputes can disrupt the company’s operations, lead to legal problems and negatively affect the financial health of the company. A shareholder dispute lawyer plays an important role in resolving such issues and defends the rights of shareholders.
What are Shareholder Disputes?
Shareholder disputes are disagreements between the shareholders of a company. These disputes may arise over issues such as the management of the company, decision-making processes, dividend distribution, share transfers or disagreements about the future of the company. Lack of consensus among shareholders can affect the operational efficiency of the company and sometimes jeopardize its continuity. Resolving such disputes often requires the involvement of the legal process.
Causes of Shareholder Disputes
Shareholder disputes can arise for different reasons. These reasons may be the following:
Disputes over Management and Administration
Disagreements about the management of the company often lead to disputes between shareholders. Shareholders may discuss the company’s strategy, the form of management or the appointment of directors. Such disputes are often related to the board’s limits of authority and decision-making processes.
Dividend Distribution and Profit Sharing
How the company’s profits should be shared is a frequently debated issue among shareholders. Some shareholders may want the profits to be reinvested, while others may want to receive dividends. Disagreements can arise over such financial decisions.
Share Transfer and Sale
Shareholders may disagree about whether to transfer or sell their shares in the company. One shareholder may want to sell or transfer their shares, while other shareholders may try to prevent this. Failure to set rules on the transfer or sale of shares can lead to serious disputes between shareholders.
Company Future and Strategy
Decisions about the future of the company can be a major source of disagreement among shareholders. Shareholders may have different views on issues such as the company’s growth strategy, mergers or acquisitions. Such disagreements can affect the direction of the company and create difficulties for long-term planning.
The Role of the Lawyer in Shareholder Dispute Litigation
Shareholder disputes are often complex and time-consuming processes. A shareholder dispute lawyer defends the rights of shareholders in such cases and proposes legal solutions to resolve the dispute quickly. Here is the role of a shareholder disputes lawyer:
Legal Counselling for Dispute Resolution
A shareholder dispute lawyer advises the parties on legal means to resolve their dispute. This counselling provides guidance on negotiations, mediation or litigation. The lawyer protects the legal rights of shareholders and guides them in the search for solutions.
Review and Preparation of the Company Agreement
Most shareholder disputes arise due to ambiguities or omissions in the company’s founding agreement or agreements between shareholders. The lawyer reviews these agreements and makes the necessary adjustments and prevents similar disputes in the future.
Mediation and Negotiation Processes
Lawyers may be involved in the negotiation process to resolve disputes between shareholders. The lawyer brings the parties together to resolve the disputes between the parties and ensures that the disputes are resolved.
Managing the Litigation Process
If the dispute between the shareholders escalates to the extent that it goes to court, lawyers manage the litigation process. The litigation process is meticulously conducted in order to defend the rights of all parties, to present the necessary documents and to ensure that the court decision is in favour.
Legal Support for Share Sale and Transfer
Shareholders’ rights must be protected during share sale or transfer transactions. Lawyers follow legal procedures and prepare the necessary agreements to resolve share transfer disputes between shareholders.
Solutions for Shareholder Disputes
Shareholder disputes can be resolved through various remedies. These ways are as follows:
Mediation and Conciliation
Mediation is a method where the parties can come together and resolve their disputes. The mediator manages the communication between the parties in an impartial manner and offers solutions.
Review of Internal Arrangements
Elimination of deficiencies in the articles of association can help to avoid disputes between shareholders. If contractual deficiencies are at the root of disputes, it is important to remedy these deficiencies.
Court Action
If other remedies do not yield results, a court may be called upon. The court takes legally binding decisions between the parties and resolves disputes.
Contact Us
Shareholder disputes in your company can disrupt the company’s operations and lead to legal problems. As a legal team specialised in shareholder disputes in Istanbul, we are at your side to resolve disputes between all shareholders. You can contact us to overcome the problems between shareholders with a legal solution.
