Shareholder disputes often occur due to differing opinions of the value of a business, which can arise when a shareholder is exiting the business and seeking a fair price for their shares. In some cases, shareholder valuation disputes can be resolved internally; however, if this is not possible, specialist advice is required to support the dispute through to resolution.
Shareholder disputes often require detailed investigation into the company’s Articles of Association, Memorandum and Shareholder Agreements, or when these are not available, consideration of Sections 170 to 177 of the Companies Act 2006, which sets out the general duties of directors. If breaches to any of these directives are identified we are then able to provide both expert reports and witness statements to the effects of said breach, and offer potential resolution mechanisms. We often work with the company’s lawyers in support of any action.
To provide a sound business valuation, our forensic accountants will conduct a thorough investigation of the company, including the consideration of business assets, turnover and profits, earning based valuations, goodwill, director’s shareholdings, and minority discount.
Shareholder and valuation disputes can often be resolved following our objective investigation into the issues identified; however, the resolution of more complex issues may require the full support of our forensic and litigation teams. Our team can provide either the necessary supporting documentation or in-process services for both the claimant and defendant, or when jointly appointed by both parties. Although we will always aim for disputes to be resolved as efficiently as possible, we understand that in some cases official proceedings such as arbitration or litigation are required. We are able to fully support these proceedings, working alongside the company lawyer and counsel as required.