Shareholder Disputes Solicitors

Complex shareholder disputes require legal expertise delivered at speed whilst being meticulously accurate. Our corporate and commercial law solicitors, based in Holborn and with over 20 years of experience, will ensure your dispute is resolved smoothly.

Under section 994 of the Companies Act 2006, you can petition the court if the company’s affairs are being run in a way that unfairly harms your interests as a shareholder, and this remedy does not require you to prove the other side broke a specific agreement. If a fellow shareholder has shut you out of decisions, moved company money in ways you were not told about, or broken an understanding you both relied on, the route you take now, an unfair prejudice petition, a derivative claim, or a negotiated exit, shapes both the cost and the outcome. We advise on shareholder disputes from offices in Stratford E15, Holborn WC1V, and Croydon CR0, and we are regulated by the Solicitors Regulation Authority.

What does our shareholder disputes service cover?

Shareholder disputes combine legal, financial, and often personal complexity, and the remedy available to you depends on whether the harm is personal to you or belongs to the company. We advise and act on:

Unfair prejudice petitions under section 994 of the Companies Act 2006, where a shareholder’s interests are unfairly harmed by how the company is run.
Derivative claims under section 260 of the Companies Act 2006, brought on the company’s behalf where a director has caused it loss through negligence, default, or breach of duty.
Disputes over exclusion from management, where you are also a director and have been removed from decision-making contrary to an understanding between the shareholders.
Breach of shareholders’ agreement claims, including disputes over share transfers, reserved matters, and voting rights.
Valuation disputes, including disagreements over the price payable for your shares on a buyout or exit.
Deadlock disputes between equal shareholders, where the company cannot reach decisions and a resolution mechanism is needed.
Just and equitable winding up petitions, in the limited circumstances where winding up the company is the appropriate remedy.
Defending boards and majority shareholders against claims brought by minority shareholders.
Negotiated exits and share buyouts, resolving your dispute without the cost and delay of litigation where possible.

Why choose Law Lane for shareholder disputes?

Our Holborn office is well placed for City businesses and corporate clients. We advise start-ups and growth-stage companies that have outgrown informal arrangements and need proper documentation before they can take the next step, as well as more established businesses facing specific transactions or disputes.

We are a multilingual firm. Our solicitors speak a range of languages, and we advise many clients from international backgrounds doing business in England and Wales. If your transaction involves overseas shareholders or cross-border elements, we can manage the English law side clearly and effectively.

Get in touch

If you are facing a dispute with a fellow shareholder, our commercial team can advise you on the strongest route to resolve it.

Phone: 020 7870 4870

Email: info@lawlanesolicitors.co.uk

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Frequently Asked Questions – Shareholder Disputes

What is the difference between an unfair prejudice claim and a derivative claim?

An unfair prejudice claim under section 994 of the Companies Act 2006 protects your own interests as a shareholder and does not need the court’s permission to bring. A derivative claim under section 260 is brought on the company’s behalf against a director, and any damages recovered go to the company rather than to you personally, so you need the court’s permission before it can proceed. We advise on which route, or combination of both, fits your circumstances.

What counts as unfair prejudice?

Examples include being excluded from management contrary to an understanding between shareholders, share allotments that dilute your holding without proper reason, misuse of company assets, or a majority shareholder acting in their own interest at the company’s expense. You need to show the conduct was both prejudicial to your interests and unfair, judged against your specific company’s circumstances. We assess whether your situation meets this threshold before advising you on next steps.

What can the court order if my unfair prejudice petition succeeds?

The court has wide discretion under section 994 to order whatever remedy it considers fair, and the most common outcome is an order requiring the other shareholders to buy your shares at a fair value. Other possible orders include regulating the company’s future conduct, requiring it to refrain from certain acts, or, in limited circumstances, winding up the company. We advise you on the remedy most likely to reflect what you actually want, since a forced buyout is not always the right outcome for every shareholder.

Can I bring a claim if I hold a minority stake?

Yes. Any shareholder, including a minority shareholder, can bring an unfair prejudice petition under section 994, since the remedy exists specifically to protect shareholders who lack the voting power to change the company’s conduct themselves. You can generally bring a derivative claim under section 260 on the company’s behalf as a minority shareholder too. We regularly act for minority shareholders who feel shut out of a business they helped build.

How much does an initial consultation cost?

We offer a fixed-fee initial consultation for company and commercial matters. At that meeting, we listen to your situation, identify the legal issues, and explain the steps and costs involved. Get in touch to arrange a time.