Shareholder and Partnership Disputes

A solvent business can be de-stabilised by problems between the shareholders or partners.  Shareholders who are also working directors can find it difficult to make the necessary decisions on strategy if their working relationship has broken down.

We recommend that each partnership, or company with multiple shareholders, should have a Shareholder Agreement or Partnership Agreement which provides a legally enforceable mechanism for resolving such disputes.  We acknowledge that not every situation can be covered by such Agreements but the mechanism can be a strong incentive to reach a compromise.  A typical example is the inclusion of a ‘Russian Roulette’ clause which provides for the compulsory exit of one or more shareholders (by selling shares to the remaining shareholders.)

If there is no such agreement then the parties will need assistance to achieve a compromise.  In the first instance, we recommend mediation as a cost effective and timely method of achieving a settlement.  If this fails the Courts can be asked to order the winding up of the company or the dissolution of the partnership.

Our Team


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On Thursday 5 November 2020, the Chancellor announced that the furlough scheme is to be extended until the end of March 2021. During this period you will be able to claim up to 80% of an Employees salary up to a cap of £2500.

 

Coronavirus Update - CJRS Extended

The Chancellor announced over the weekend that the Coronavirus Job Retention Scheme (CJRS) that was due to end on 31st October will be extended until 2nd December.  The level of support available under the extended scheme will mirror that of what was available under the CJRS in August, with the Government paying 80% of wages up to a cap of £2,500.

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The Chancellor announced on Thursday 22 October that the Government contribution to employers’ wage costs under the Job Support Scheme (JSS) will be increased. Employers will be expected to pay 5% of the cost of unworked hours instead of the 33% originally announced.

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