If a shareholder dispute is resolved by one party buying out the other’s shares then the value of those shares must be agreed or, in default of agreement, determined by an expert valuer. The perils of the company’s auditors carrying out this function has been previously noted (see this post) but there is also the risk of the expert simply failing to deliver what they are required to, for good cause or not. What happens then? The matter was considered in the case In the Matter of Minrealm (& ors), Bishlawi & anor -v- Soliman & ors  EWHC 343 (Ch).
Posts tagged: shareholders dispute
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.
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.