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Shareholder Dispute Lawyers

Shareholder Dispute Lawyers

Specialist Shareholder Dispute Lawyers for Australian Businesses

Shareholder disputes arise when the owners of a company can no longer agree on how it should be run, valued or exited. Common flashpoints include a majority shareholder acting in a way that unfairly prejudices a minority owner, deadlock between equal shareholders, disagreement over a company’s value on exit, or a breakdown in the shareholder agreement itself. Left unresolved, these disputes can freeze decision-making and put the company’s future at risk. We advise founders, minority shareholders and companies across Australia on resolving these conflicts.

Our team has deep experience with the statutory oppression remedy under section 232 of the Corporations Act, as well as the negotiated and mediated pathways that resolve most shareholder disputes without a costly court fight. We assess a dispute early, advise on realistic outcomes and pursue the path most likely to protect our client’s interests and investment. Fixed-fee options are available for defined stages of a matter, and we act nationally from offices in Melbourne, Sydney, Brisbane and Perth.

What We Offer

Shareholder Oppression Claims

We advise minority shareholders on oppression claims under section 232 of the Corporations Act.

Shareholder Agreement Disputes

We act in disputes arising from a breach or ambiguity in a shareholders’ agreement.

Minority Shareholder Rights & Buyouts

We advise minority shareholders on their rights and negotiate fair buyout outcomes.

Company Valuation & Exit Disputes

We help resolve disagreements over a company’s valuation when a shareholder is exiting.

Deadlock Resolution

We help equal shareholders break a decision-making deadlock before it damages the company.

Negotiation, Mediation & Litigation Support

We resolve shareholder disputes through negotiation and mediation where possible, and litigate when necessary.

Our Services

FAQs

What is a shareholder dispute?

A shareholder dispute is a disagreement between the owners of a company, commonly over unfair treatment of a minority shareholder, deadlock between equal shareholders, or disagreement over an exit or company valuation.

Shareholder oppression is conduct by a company, or those controlling it, that is contrary to the interests of shareholders as a whole or unfairly prejudicial to a shareholder. It’s addressed under section 232 of the Corporations Act.

It depends on the shareholders’ agreement and the company’s constitution. Forced sale mechanisms exist in some agreements, but a shareholder can challenge a forced sale that is oppressive or improperly conducted.

Most shareholder disputes are resolved through negotiation or mediation, often reaching a buyout or restructuring of shareholdings. Court proceedings, including an oppression claim, are pursued when a negotiated outcome isn’t possible.

A shareholder dispute concerns a person’s rights as an owner of the company. A director dispute concerns a person’s conduct or position as a director. The same person can be involved in both, but the legal issues are distinct.

As early as possible, particularly if a shareholder feels unfairly treated or the shareholders’ agreement is unclear, so options can be assessed before positions become entrenched.

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Disclaimer:
Please be advised, Allied Legal does not provide services in loans, family law, criminal law, or migration law.