HomeCase studiesSMEs, directors & shareholdersShareholder and member servicesObtaining a fair deal for a shareholder following a remuneration dispute

Why the client needed our help

Our client, a director and operations manager of a weights and measures company, was in deadlock with his fellow business owner following a shareholder dispute over finances – the directors were both 50% shareholders but the other was remunerating himself more. Our client was considering leaving the company and forfeiting his shares just to escape the difficulties. He wanted our help resolving the dispute.

How we helped

In light of our client’s equitable interest in the company, we agreed to a contingency arrangement whereby payment of our legal fees depended on the success of the case. We wanted him to walk away with the full amount to which he was entitled.

We approached the dispute from a commercial corporate governance perspective, adopting the principles which protect minority shareholders and shareholders generally in the management of a company. This greatly assisted our client in the negotiations that arose.

The outcome

Through negotiations and a subsequent mediation, we were able to secure a buyout of our client’s interest for a substantial sum that greatly exceeded his expectations.

Supportive and friendly with partner-led involvement, I would recommend Francis Wilks & Jones to anyone facing a similar situation.

The client

Key contacts

Stephen Downie

Stephen Downie

Partner

Shevy Narendra

Shevy Narendra

Senior Associate

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