Why the client needed our help
Our clients were two former shareholders (and directors) of a business which had been acquired and disposed of by a larger company. They had made an agreement with a third shareholder (also a director) to dispose of the business and repay sums owed. That shareholder had disposed of our clients’ interest, sold the company to the larger company, removed all assets, failed to pay our clients as creditors, and dissolved the business. Our clients were keen to seek repayment of their indebtedness and an account of their interest in the former business.
How we helped
We immediately threatened reinstatement of the company dissolved for the purpose of pursuing the wrongdoing former directors of the company and personal proceedings against them for breaches of their fiduciary duties and for misrepresentation in their dealings.
We issued pre-action protocol correspondence and had ongoing negotiations resulting in an offer made to attempt settlement of the dispute.
Following negotiations, offers were made under the threat of proceedings but, on advice, were rejected and eventually an offer made by our clients well in excess of their initial expectations was accepted.