A company’s shareholders are its owners, whereas the day-to-day running of the company is the responsibility of its directors. There is often an overlap between these two roles, particularly with smaller companies. However, both roles carry clearly defined and different rights and responsibilities. A well drafted shareholders’ agreement can help define the boundaries, particularly concerning the shareholders’ rights to appoint and remove directors. A shareholders’ agreement can also prevent disputes between shareholders arising in the first place or, where they do, make them more straightforward to resolve.
We also have extensive experience of acting in disputes between directors and/or shareholders, and unfair prejudice actions by minority shareholders.