Partnership & Shareholder Disputes Solicitors

Disputes between partners or shareholders can disrupt businesses and lead to significant financial loss.

At TV Edwards, our partnership and shareholder disputes solicitors in London help resolve conflicts in a professional manner, ensuring your position is respected.

What Are Partnership and Shareholder Disputes?

Partnership and shareholder disputes occur when disagreements arise between business partners or shareholders, often impacting company operations. These shareholder and partner disputes can involve profit distribution, decision-making authority, or breaches of fiduciary duty, such as mismanagement by directors.

UK law, including the Companies Act 2006 and Partnership Act 1890, governs these relationships, with obligations outlined in articles of association or partnership agreements.

At TV Edwards, our partnership and shareholder dispute solicitors help you navigate these complexities, whether through negotiation or court action. To resolve disputes, you must prove:

A legal relationship existed (e.g., partnership deed or shareholder contract)
A breach occurred (e.g., unfair prejudice or breach of duty)
The harm was foreseeable

Disputes often require resolution within statutory limits, and with our expertise we get our clients fair outcomes, whether they’re a minority shareholder or a partner in a dissolving business.

Why Partnership and Shareholder Disputes Arise?

Conflicts typically stem from unclear agreements, differing priorities, or personal tensions. For example, a majority shareholder might make decisions that prejudice a minority, or partners may disagree on business expansion, leading to costly disputes.

Without legal intervention, these issues can escalate, damaging relationships and business value. These tensions often intensify in joint venture disputes, where multiple parties have overlapping interests.

Common Dispute Scenarios

Our shareholder and partner disputes solicitors handle a variety of cases, including:

Profit Sharing: Disputes over unequal dividend distributions or partnership profits.
Management Decisions: Challenges to board actions or voting rights, regularly involving derivative actions.
Breach of Duty: Allegations of fraud, mismanagement, or breaches of fiduciary duty by directors or partners are common in civil fraud claims.
Exit Strategies: Conflicts over partner expulsion, buyouts, or company dissolution, such as winding-up petitions. In some cases, especially where there’s a risk of asset dissipation, we may advise seeking a freezing injunction.

These scenarios often involve complex evidence, requiring expert legal support for resolution.

Why do Shareholder Disputes happen?

A company’s directors have a number of different obligations and duties to perform for the benefit of the shareholders of their company.

This is in addition to the rights and obligations shareholders have between themselves and become particularly relevant when one takes issue with the conduct of the other (or more commonly when a minority shareholder disagrees with the actions a majority shareholder or shareholding group may be taking).

Shareholders obligations are contained both within the company’s articles of association and have a basis is statute as well. Navigating these different powers and rights a shareholder has is the first step in trying to determine or otherwise resolve alleged breaches of duties between such actors. Each individual situation is largely fact specific but it is our role in assisting and advising our commercial clients to reach a resolution whether amicably or through court application.

It is not always the case that a minority interest can do nothing in respect of the company they are a member of. Whether you are considering a derivative action (redress against directors), unfair prejudice petition or otherwise seeking to wind-up the company – the advice of our dispute resolution lawyers is beneficial in such circumstances to allow for you to weight the benefits and risks of action to make.

Why do Partnership Disputes happen?

Issues often arise when more informal arrangements exist between two or more individuals working as a business.

Partnerships, while ordinarily made by way of formal written partnership deed, can exist when more than one individual carries on business in common with a view of profit. Partnerships, just like people, evolve over time and disagreement can occur when partnerships are seeking to expand, remove a partner (whether following poor conduct or otherwise) or change the business scope and nature of the business direction.

While never a straightforward situation, as business disputes often involve a mixture of issues and personal sentiment – such areas are navigated professionally and delicately by the solicitors in our dispute resolution department. We assist both existing and leaving partners in in professional contexts including accountants, actuaries, architects, medical and dental practitioners, legal advisors and surveyors.

We offer advice and assistance in partner removing or expulsion, breaches of financial and partnership duties, dissolving partnerships and actions for an account of profits.

When to Seek Legal Advice

If you’re facing a shareholder and partner dispute, seek legal advice as soon as you can. In order to strengthen your case (which is especially important as delays can complicate evidence gatherings or miss statutory deadlines), take early action.

Our team will assess your situation, advise on options like unfair prejudice petitions, and guide you through the next steps.

Related Dispute Resolution Services

Building Disputes

Commercial Dilapidation Claims

Commercial Lease Renewals

Intellectual Property Disputes

Japanese Knotweed Disputes

Lease Extensions

Residential & Commercial Landlord & Tenant Possession Disputes

Service Charge Disputes

TOLATA Disputes

How We Handle Partnership and Shareholder Disputes

Our partnership and shareholder disputes solicitors are experienced in navigating complex litigation, particularly where evidence and relationships are nuanced. We handle disputes across professional sectors, including accountants, architects, and medical practitioners. Our process looks like this:

Case Assessment: We review agreements, financial records, and communications to identify breaches.
Expert Advice: We explain your rights under the Companies Act or Partnership Act, helping you weigh options like derivative actions or mediation.
Evidence Gathering: Any relevant information, such as witness statements, financial data, and expert opinions, are all collected as we build your case.
Negotiation: We use round-table discussions, mediation, or arbitration to reach amicable solutions.
Court Representation: If necessary, we pursue court applications, such as unfair prejudice petitions, insolvency litigation, or winding-up orders, to protect your interests.

We adopt an empathetic approach, which creates trust and clarity throughout the process, leading to better results. See what our clients say for more information.

Preventing Partnership and Shareholder Issues

You can reduce risks with these proactive steps:

Clear Agreements: Draft detailed partnership deeds or shareholder contracts outlining roles, profits, and dispute resolution mechanisms.
Regular Reviews: Conduct periodic audits to address issues early, maintaining transparency throughout.
Dispute Clauses: Include mediation or arbitration clauses in agreements to streamline resolutions.
Documentation: Keep records of all decisions, transactions, and communications, should claims arise later down the line. Ensure all intangible assets are documented and intellectual property protected to prevent ownership disputes.
Education: Learn how to avoid civil fraud through improved business processes and transparency.

Our broader dispute resolution expertise helps you avoid any pitfalls. We provide empathetic support throughout, giving you confidence in your decisions and clarity about any implications.

Why Choose TV Edwards?

Highly ranked in legal directories – Recognised by Legal 500 and Chambers UK
Practical solutions – we explore settlements, mediation, arbitration, and other ADR
Proven success – Strong court record, if Alternative Dispute Resolution isn’t an option
Cost-effective solutions – Always transparent about costs and funding arrangements
Specialist expertise – London team with experience in complex commercial cases

Client Testimonials

Without hesitation, I give Adam Haffenden my highest recommendation. You and your support staff assured us you will help us achieve the best outcome for our business in our arbitration dispute with a large London based housing association. You gave us expert advice and peace of mind regarding our legal position on the matter – you helped our problems go away and delivered a remarkable outcome, that we are truly thankful for. The way you tactically negotiated our position to recover nearly £200,000 from the defendant (including most of our legal costs) using your strategic nouse, was incredible. You instilled a confidence in us that we have never had with any legal representative before. Honestly, you went above and beyond and fought for everything in our case with a tenacious, can-do attitude. I would strongly recommend this firm and especially Adam Haffenden to anyone. Adam, simply outstanding, we shall be coming back in the future for sure. — Client

Adam and Ina from the Dispute Resolution team provided a high-quality, professional service while working on my case to negotiate a settlement offer in respect of our dilapidations claim. The team’s knowledge of this area of law and advice on best strategies allowed us to negotiate a settlement sum much lower than what the other side originally requested, avoiding the need for court proceedings. I would highly recommend them for matters of this nature. — Client

I instructed Adam Haffenden, Head of Dispute Resolution, regarding the removal of the highly invasive Japanese Knotweed plant that was spreading from neighbouring land onto mine and the advice I received was absolutely superb. His thorough understanding of this niche area of law enabled us to negotiate the removal of the knotweed with our neighbour, within weeks of instructing him, without having to engage in costly litigation. If you want top rate legal advice, delivered in a simplistic way, I highly recommend Adam and TV Edwards to everybody who needs Japanese Knotweed advice. — Client

I am a delighted that TV Edwards won my TOLATA claim at trial, achieving an order for sale granted in my favour and an order for 50% of the proceeds of sale. I am also so thankful that they managed to obtain an adverse costs order for £25,000 which is payable by the defendant. — Dispute resolution client

Partnership and Shareholder Dispute FAQs

What are partnership and shareholder disputes?

Conflicts between partners or shareholders over business operations or profits.

These shareholder and partner disputes often involve financial disagreements or governance issues. We help resolve them efficiently.

How can partnership and shareholder dispute solicitors help?

By assessing cases, negotiating settlements, and representing you in court should the need arise.

At TV Edwards, we guide you through mediation, arbitration, or litigation, aiming for fair outcomes with minimal disruption.

What scenarios involve these disputes?

Profit sharing, management decisions, breaches of duty, or exit strategies.

These vary widely, from profit disputes to partner expulsions. Our expertise ensures individualised support for each case.

How long do I have to act?

Act promptly, as delays can weaken your position under company law.

There’s no fixed time limit for unfair prejudice claims, but undue delay can harm your case. Consult us now and let us assess it for you.

What outcomes can I expect?

Financial compensation, revised agreements, or business dissolution.

We aim for amicable resolutions but can pursue court action to protect your interests.

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TV EDWARDS SOLICITORS LLP

Partnership and Shareholder Disputes

Making group decisions has never been an easy or straightforward task.

What Are Partnership and Shareholder Disputes?