Shareholder disputes can be toxic. It can result in:

  • Creditors not being paid;
  • Staff not being paid;
  • Directors taking remuneration they are not entitled to;
  • Transactions occurring without consent;
  • Loss of key suppliers or customers;  Unilateral decisions being made;
  • Assets being stripped; and/or
  • The true financial details of the Company being hidden.

Brent Norling and Xinan Zhang of Norling Law discuss the traditional approaches to resolving a shareholder dispute and a little known provision of the Companies Act 1993 that is not often used which can be useful for resolving toxic shareholder disputes. Often the ‘toxic’ shareholder is acting in the way they are out of a false sense of security and the perceived lack of options available to other (usually minority) shareholders. It is important that shareholders be fully aware of the options available, so a proper and fully informed decision is made. We offer a free legal consultation where we can discuss the issues and formulate the best strategy to resolve issues. You can book a free consultation You can also download our E-book, The Five Options to Resolve Shareholder Disputes: http://go.norlinglaw.co.nz/shareholder-disputes

You may also like

Who Pays the Insolvency Practitioner?
So an insolvency practitioner has been appointed. So who pays his bills? The creditors? The person who appointed? The shareholders? Or? In this video Brent Norling gives a quick rundown of who is required to pay the practitioner’s [...]
How Funds Are Distributed in a Liquidation
If you find yourself in the unfortunate position of being owed money from a company in liquidation, then this video is for you. When a company is liquidated there is a priority regime that must be followed when it comes to [...]
Collecting Company Debts: The Squeaky Wheel Strategy
If you are owed money from a debtor company, there are two reasons why you should consider initiating liquidation proceedings. However, commencement of liquidation proceedings is a great strategy to obtain payment from a debtor [...]
12317

Page 1 of 17