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Partnership and Shareholder Disputes Solicitors, London

Shareholder Disputes and Partnership Disputes

Shareholder Disputes Solicitors London

Shareholder and partnership disputes often arise in the context of a breakdown in relations between the individual owners of a business.

Shareholder dispute solicitors should initially  identify and assess the terms of the shareholders’ agreement. Often, the parties will have taken legal advice at the outset of their business relationship and had a shareholders’ agreement or joint venture agreement drawn up.

It is not always this straightforward, however. Shareholder disputes often arise when the parties have commenced their venture together on a “handshake” basis, or on the basis of a verbal shareholders’ agreement.

Where friends or family are concerned, or in the case of a successful start-up business with humble beginnings, there may be no written agreement, meaning the parties’ rights and obligations are not conveniently set out in one place.

This usually requires piecing together the terms of the agreement from past conversations and written communications. It can seem difficult, but it is an essential task that litigation solicitors should look to perform with precision.

Types of Shareholder Disputes


At South Bank Legal, our shareholder dispute solicitors, London, have expertise in disputes involving issues such as:


  • 50/50 shareholder deadlocks– often arising where no written shareholders’ agreement exists, the shareholders cannot agree on how to take the company forward, and no shareholder has the majority vote required to make key decisions. Communications between the parties have often broken down in these situations. Our disputes solicitors, London, have negotiated amicable resolutions to the most difficult of 50/50 deadlock cases.
  • Unfair prejudice claims– notwithstanding the existence of a shareholders’ agreement, shareholders can obtain statutory remedies under Part 30 of the Companies Act 2006, where the company’s affairs have been conducted in a manner that is unfairly prejudicial to the interests of shareholders. Unfair prejudice petitions are common, and courts have the power to order that an affected shareholder be bought out by the company or the other shareholders.
  • Disagreements as to funding– sometimes, a venture will require further capital contributions from the shareholders or individual partners. Disputes can arise where there is no clear agreement as to how the venture will be funded beyond initial capital contributions. Funding stalemates can destroy the value of a venture if they are not resolved efficiently.
  • Partnership disputes – partners are personally responsible for the liabilities of the business partnership; therefore third parties can make a claim against the individual partners. Disputes within the partnership can arise when there are disagreements regarding how the partnership is conducted or when a partner wishes to leave the partnership, which could cause issues and complications for the remaining partners and the business.

If you are currently dealing with any type of partnership or shareholder dispute, please get in touch with one of our shareholder dispute solicitors, London for expert advice on your case.


Partnership Dispute Solicitors London: Our approach to shareholder disputes


Expertly drafted shareholders’ agreements can help to prevent disputes from arising by regulating the relationships between directors, shareholders and the company. Shareholders’ agreements can also help to resolve disputes if they do arise, because there is  more certainty on the terms of the original shareholders’ agreement.


LLP members agreements may also be entered into by the individual members of a limited liability partnership. Limited liability partnership agreements are legally binding contracts that outline the responsibilities, rights, duties, and liabilities of each member as well as detailing how the LLP will be managed and run. Limited liability member agreements are governed by the default provisions laid out in the Limited Liability Partnerships Act 2000.

One method of resolving shareholder and partnership disputes includes arbitration, mediation or an early neutral evaluation of the dispute. These are forms of Alternative Dispute Resolution (ADR) that can be used as methods of resolving legal disputes instead of Court litigation proceedings. These methods are more cost and time-effective and can be more effective at taking both parties’ business interests into account, as a compromised outcome is usually achieved, as opposed to the ‘all or nothing’ of letting the Court decide.

If ADR methods prove to be unsuccessful, our partnership dispute lawyers have the experience needed to guide you through the court process and, when instructed, represent your case in the courtroom.


How can South Bank Legal assist?


Our shareholder and partnership dispute solicitors, London, handle a range of disputes. In cases large or small, we consider that it is crucial to control the costs of litigation to ensure that perspective is not lost and that legal costs do not grow out of proportion to what is at stake.

Our client profile is diverse, and we have a good track record. As shareholder disputes solicitors, we have represented a range of clients, from single individuals to large companies in complex partnership dispute claims. The firm has several litigation solicitors who each have over 20 years of experience.

Shareholder disputes often require subtlety and expertise in order to secure an appropriate way forward. Therefore, it is essential to have a highly experienced shareholder dispute solicitor on your side to assist all parties involved to reach a mutual settlement in a time-effective manner. At South Bank Legal, our shareholder solicitors can provide expert legal advice on how to proceed with your partnership dispute case.

Our UK commercial law firm is authorised and regulated by the solicitors regulation authority, and our partnership dispute lawyers can offer legal services to those located in England and Wales. We have offices located in Central London.

We offer our services on a wide range of commercial issues, such as intellectual property disputes, employment law and contract disputes, and property disputes.

If you are a shareholder or partner in a venture and wish to understand your rights or potential claims, you can contact South Bank Legal via email at info@southbanklegal.com or telephone 0203 1266 584 for a confidential discussion with a shareholder dispute solicitor or our litigation team today.


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