Merry Christmas & Happy New Year

May your boardroom be a haven of peace and tranquility and may your rights as a shareholder be observed in the spirit of the Companies Act 2006.

Do shareholder disputes increase in a recession?

There is a received wisdom that litigation lawyers do well out of economic downturns.  Yet another reason to dislike lawyers!

However, the reality is a little more complicated.  Whilst bad economic times can result in an increase in certain types of litigation (insolvency and banking disputes are an obvious example) in many other areas the position reflects the the health of the sector itself.  This is true, to an extent, in relation to shareholders disputes.

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Chambers Directory notes expertise in company and shareholder disputes

The 2012 edition of Chambers Directory has now been published and once again Cripps Harries Hall LLP are ranked in the top band for litigation in Kent & Sussex.

See - Dispute Resolution - The South - Kent & Sussex in the online edition.

My own specialism in boardroom and shareholder disputes is also recognised, the directory confirming my “considerable expertise” in this area.  This recognition is particularly welcome as Chambers takes time to sound out other lawyers as well as clients in coming to their assessments.

A dragon in lingerie

Directors must act in the best interests of their company and must not allow their personal interests to come into conflict.  There are common law fiduciary duties as well as rules under the Companies Act 2006 to this effect.  A recent case involving the Dragon’s Den star Theo Paphitis is a good illustration of the risks directors take when it is perceived that their own interests are being served by a transaction rather than those of the company.

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Legal 500 recognition for shareholder disputes expertise

If you are looking for a lawyer with expertise in a particular area then a good starting point is to look at the leading legal directories.

The latest edition of the Legal 500 directory in the UK has recently been published.  I am pleased to report that the expertise of my firm and myself in the areas of commercial litigation, and specifically shareholders disputes, continues to be recognised.

Click on the the following link to visit the Legal 500 online.

Unfair prejudice and LLPs

The law in relation to unfair prejudice which flows from s.994 of the Companies Act 2006 applies to Limited Liability Partnerships (LLPs) as well as companies.

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Minority shareholders - beware of arbitration clauses

Further to my previous post on this subject the Court of Appeal have upheld the decision in Fulham Football Club (1987) Ltd -v- Richards and confirmed that arbitration clauses in shareholder agreements will be enforced.  Arbitration is an effective way of resolving disputes but minority shareholders in particular should be wary of agreeing to an arbitration clause in a shareholders agreement.

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Nice guys can win in the boardroom

My previous post on the 2011 series of the Apprentice proved fairly accurate from the point of view of the characters we were likely to meet.  It was however wrong in one important respect!

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Resolving disputes in the family business

The more complex personal relationships inevitable in family companies can often give rise to the more intractable and bitter kind of shareholders disputes.  Litigation is not the only solution and more often than not it is not the best solution.  Mediation is a powerful tool to unlock such disputes as is highlighted in an article recently published by mediator Jon Lang.  Click here to read Jon’s article.

Women on top in the boardroom

At least in Lord Sugar’s boardroom, if not the real world, women have clearly got the upper hand in the opening epsiodes of this year’s Apprentice.  Three firings and three blokes trudging to the door with their wheelie cases following disconsolately behind them.

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