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Running a successful company is not always smooth sailing. Many of our clients find themselves dealing with difficult issues, such as breaches of director’s duties or disputes between partners or company shareholders. If you are experiencing any of these matters, you are likely to be feeling anxious about how to resolve them and the commercial impact they may have.

Our Commercial Law Solicitors can help you deal quickly and effectively with these challenging legal issues. We take great care to understand your circumstances and requirements. We provide strategic advice and solutions to limit the impact on your business – from drafting and negotiating contracts with directors, shareholder agreements and partnership agreements to dealing with any litigated aspects of these agreements and company disputes. Contact us to find out how we can help.

Breach of directors’ fiduciary duties

A company director has several responsibilities under the Companies Act 2006. They will be in breach of their duties if they act in any of the following ways:

  • Exercise powers they do not have under the company constitution
  • Act because someone else is telling them what to do
  • Have an interest that conflicts, or may conflict, with the company’s interests
  • Accept gifts from third parties
  • Fail to declare interests in a proposed or existing transaction with the company

Dealing with a breach of duties by directors

The penalties for breach of directors’ duties are severe and include injunction, damages, restitution of profits or property and, in some cases, criminal liability.

If a director of your company is in breach of their duties, it is important to seek legal advice immediately to protect the company and resolve any company disputes. Three Graces Legal is here to provide you with tactical advice to achieve your commercial objectives and minimise the impact on the business. Where possible, we will attempt to resolve the matter using mediation or another form of alternative dispute resolution (ADR). However, if litigation is unavoidable, we will prepare a robust case on your behalf.

Shareholder disputes solicitors and partnership disputes solicitors in Liverpool

Disputes between shareholders and business partners can occur in many situations, from difficult working relationships to conflicting views on the direction of the company.

In all circumstances, it is essential to seek legal advice promptly to identify the best course of action and limit the time and money spent on resolving the matter. At Three Graces Legal, we understand that every business and every dispute is different. We will get to know your circumstances and objectives and provide practical and tailored advice.

Dealing with shareholder and partnership disputes

We will always attempt to help you avoid drawn out and expensive court proceedings by negotiating a solution with shareholders and partners.

Purchase shares or buy out a partner

Sometimes the easiest and least expensive way to resolve a company dispute or partnership dispute is for dissenting shareholders or partners to be ‘bought out’. Our team can help you to decide how best to finance this and put together an attractive offer package if this is the best option for your business.

Remove a director or partner

Often the best way to break a deadlock may be to remove one or more partners or directors. How to do this will be determined by the relevant legislation and the company constitution or partnership agreement.

It can be difficult to remove a director or partner when dealing with a particularly divisive issue, as a greater majority among partners or shareholders is often required. Our expert team can advise you on whether this route is something your business should consider and provide a strategy to achieve it if so.

Winding up or dissolution

It is possible to apply to make a court application for a company to be ‘wound up’, i.e. brought to an end, in order to resolve a shareholder or partnership dispute and allow all parties to recover their respective shares of the business. This can also be done voluntarily, and in the case of partnerships, one partner may be able to extract their investment while the other partner carries on the business.

Contact our Corporate and Commercial Solicitors in Liverpool, Wirral and Merseyside Today

Make a Free Enquiry

If your company is experiencing issues with director misconduct or disputes between partners or shareholders, we can help. Contact our team today for a FREE no-obligation call, and we will explain your legal rights and options. Call us now on 0151 659 1070 or complete our online enquiry form.

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0151 659 1070




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