Shareholder disputes can arise for many reasons, including:
- Relationship breakdown;
- Disagreement amongst major shareholders regarding operational strategies and / or dealing with underperforming business units / key people; or
- Fraud / breach of duties.
Irrespective of the reason for the dispute, the management distraction and value destruction in the business and / or key assets can be significant. The earlier the dispute is acknowledged, and an independent qualified professional is engaged, then a pathway to resolve it can be identified.
Jones Partners are regularly engaged to help to deal with many shareholders disputes and this typically involves undertaking a financial review of the business and / or underlying key assets and reporting and recommending to shareholders on the best course of action. Having someone involved that is professional, independent and not emotionally attached to the business often results in a better outcome for shareholders so that they can move forward.
In certain circumstances, other possible options may include consideration of the Voluntary Administration pathway or a Section 66G appointment should it be more confined to unlocking value in real property.