shareholder deadlockshareholder deadlock: in corporate law; a stalemate that ari...: in corporate law; a stalemate that arises where the shareholders of a company are unable to make decisions or pass resolutions, usually due to a conflict or shareholder dispute; often arises in 50/50 joint ventures, or where there are two shareholders each holding 50% of voting rights; can cause serious problems for the company and lead to shareholder litigationlitigation: the bringing of a lawsuit or legal claim in cour... if relevant decisions cannot be taken due to the deadlock.