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How To Handle Disputes With Shareholders

Alice Porter Alice Porter , 4/10/2018
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Sometimes, disputes between shareholders can start due to many different possible causes. It is very important to understand what are the most common ones so you are able to act accordingly. Another important factor when it comes to this type of situations is understanding what are the rights of each party involved in the dispute. 

Types Of Disputes


When it comes to trustee disputes, as said, there are many different ones. The most common are:

-Bad personal relationships

-Lack of performance from a party involved in it

-Unfair behaviour

-Certain contracts' terms.

What To Do

First of all, if you have anything written on your contract, see if both parties have respected their duties, as this could and will be a breaking point in deciding who's right and who's wrong. To start off with your dispute, make sure that everything is put in writing and there is no room for unclear pieces of information, as this will lead to other problems. Second, you must consider (as already said) that if you have a healthy relationship with your shareholder, that will lead to no disputes. Make sure that every shareholder is encouraged in reporting any possible issue, so everything can be smooth and easy. Another very important thing (as mentioned at the beginning of this paragraph) is that every contract has to be clear and every duty must be listed in respect of each other's integrity, as a professional and human being.

How To Resolve it

Sometimes, resolving disputes could be (and most of all will) a simple mediation process: hiring a third-party mediator will set it down so each party will be able to better understand the other one. Since this process is private and discrete, it could really be the best choice for your situation.

If this doesn't appeal to you, then another possible solution for you should be submitting the entire scenario to an impartial arbiter with relevant experience in the field who can judge who's right and who's wrong. Being more formal and direct, try to use this solution only if there is no possible space for mediation.

Conclusion

When it comes to resolving a dispute, mediation is always the best choice, as it is usually the most polite one. If you decide to go to an arbiter, then be aware of the possible consequences that might come up. Always be polite then! Alice Porter is an avid business writer who specialises in commercial law Manchester.