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 <a href="/consultation-brent/"here: 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

Advantages of Mediation vs Litigation
Mediation is a great way to resolve commercial disputes. There are some huge advantages to mediation. Here we discuss some of the significant advantages of mediation, how mediation typically unfolds and why some mediations go past [...]
The Burning and then Rise of Phoenix Companies
Here, Brent Norling, Director of Norling Law and Damien Grant, Director of Waterstone Insolvency discuss all things Phoenix Companies. Old companies are often burned and new companies often rise from the ashes with renewed youth [...]
Top-Tip for Business Owners Who want to Improve
Here is a #TopTip for business owners who want to improve their business. It is something that I have been doing for a while. It is important to do and to do regularly to keep the business moving forward. What is your top business tip?
1237
Page 1 of 7