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Start New Company - Directors Dispute

What should you do in case of a Directors’ dispute?

You need to understand your company’s options and your will need a strategy on how to approach the issues and/or problem.

Your first step should be to seek legal advice.  This will give you an understanding on the company’s position.  You should seek legal advice whether you have a Shareholder Agreement in place or not.

After seeking legal advice – possible next step is to meet with the Director to discuss what the issue is and what is a suitable and agreeable outcome for both parties (if possible).

You should meet in person, on neutral ground and come prepared with your facts and other relevant information.  This will help you keep on track, be concise and also act as a sort of agenda of the points you wish to discuss. 

At this stage, hopefully the issues can be identified and resolved amicably.  Your solicitor does not need to attend at this stage, however if you feel like you would like a more formal meeting – advise the other party that you will have your solicitor present so that they too are prepared and do not feel ambushed at the meeting. 

Another option is formal mediation if you feel that the dispute has progressed to a point you think a more formal meeting is required.  You can appoint a mediator if you wish – your solicitor should probably attend this meeting.

Start New Company are not legal practitioners – You should always seek independent legal advice and not rely solely on our blog posts.


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