Frequently we are consulted by owner/managers of small privately owned companies where members have fallen out over their respective roles/involvement in the management of the company. Often, but not always, these are family owned companies.
At the outset, we often act "behind the scenes", advising our client on the legal issues raised by the dispute and enabling our client to "front" the commercial negotiations so as not to escalate the dispute by the direct introduction of lawyers.
Often, the main issue is the valuation of the other shareholder's shareholding. It is critical to select the right valuer and, ideally, to pre-empt the selection of a valuer by the other shareholder. We regularly instruct professional valuers who are highly experienced in valuing minority shareholdings.
The recent court decision of O'Neill v Phillips (1999) has had a significant impact on the law relating to conduct which the courts will regard as unfairly prejudicial to minority shareholders. All solicitors advising on these disputes need to be fully aware of this judgment. We have advised a number of clients on the application of this case to their dispute.
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