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Investment disputes arise between investors, founders and companies over how an investment or capital raise was structured, represented or executed. Common flashpoints include disagreements over convertible note terms, disputes about promises made during a capital raise, breaches of shareholder or investment agreements, and disagreements over dilution or valuation. Left unresolved, these disputes can damage the relationship between a company and its investors at a critical stage of growth. We advise founders, companies and investors across Australia on resolving these conflicts.
Our team has deep experience with capital raising structures, convertible notes and the investment agreements that underpin most start-up and scale-up funding rounds. We assess a dispute early, advise on realistic outcomes and pursue the path most likely to protect our client’s interests, whether that’s renegotiating terms or pursuing a claim. Fixed-fee options are available for defined stages of a matter, and we act nationally from offices in Melbourne, Sydney, Brisbane and Perth.
We advise founders and investors on disputes over convertible note terms, conversion and repayment.
We act in disputes arising from representations made or terms agreed during a capital raise.
We act in disputes arising from a breach of a shareholder or investment agreement.
We help resolve disagreements over dilution, valuation or the terms of a follow-on raise.
We advise investors on their rights to information and involvement in company decisions.
We resolve investment disputes through negotiation and mediation where possible, and litigate when necessary.
A convertible note is a loan to a company that converts into equity at a future event, usually a funding round. Disputes commonly arise over the conversion price, interest, or whether a triggering event has actually occurred.
Allied Legal reviews the note terms and the circumstances of the dispute to advise on your rights and negotiate or litigate the outcome you’re entitled to.
Yes, if representations made to induce your investment were false or misleading, you may have a claim for misrepresentation or misleading and deceptive conduct, in addition to any breach of the investment agreement.
Allied Legal investigates what was represented against the company’s actual position, and advises on the strongest available claim.
A minority investor’s rights depend on the shareholder or investment agreement and the Corporations Act, including anti-dilution provisions if they were negotiated, and general protections against oppressive conduct.
Allied Legal reviews your agreement and the circumstances of the raise to advise on whether the dilution is lawful and what options are available if it isn’t.
Most investment disputes are resolved through negotiation between the company and investor, often reaching a revised commercial arrangement, before escalating to court if a resolution can’t be reached.
Allied Legal manages this process on your behalf, aiming for a commercially sensible outcome that protects the ongoing relationship where possible.
An investment dispute typically concerns the terms on which capital was raised or invested, such as a convertible note or capital raise agreement. A shareholder dispute concerns the ongoing rights of an existing shareholder, such as oppression or exit rights.
Allied Legal identifies which issues are genuinely in play in your matter and advises on the full range of claims available, since the two often overlap in practice.
As early as possible, particularly once a disagreement over investment terms, dilution or a capital raise starts to affect the relationship between the company and its investors.
Allied Legal reviews the relevant agreements immediately to advise on your position and the options available before it escalates further.