Shareholder conflicts

A properly implemented share buyback can strengthen a company’s market position, but mistakes in the process can lead to legal disputes, financial losses or even damage the company’s reputation. 

We help shareholders avoid these mistakes by preparing all the necessary documentation. We also ensure that the rights of minority shareholders are not violated and that share prices are properly valued. 

When planning to launch a share buyback, we advise both companies and shareholders to seek timely legal advice to avoid shareholder disputes.

Every experienced entrepreneur knows that success is not just about numbers or strategies, but also about the people you work with. The shareholder relationship is one of the main pillars of a business. Any disagreements between shareholders can jeopardise the future of the business and its public image. 

Shareholder agreements are not just a formal document. They are your safeguard against future shareholder disputes. They protect small shareholders from undue pressure and provide clarity for larger shareholders who want to invest and grow the company. These agreements can provide for situations where one shareholder should step back or define actions that are agreed not to be taken. For example, to protect minority shareholders from undue pressure from the majority shareholder, restrictions can be placed on dilution of the company’s shares or capital increases without the consent of all shareholders. Shareholders’ agreements clearly increase the stability of a company’s operations.

In the dynamic world of start-up financing, investment disputes often arise when there is a mismatch between investor expectations and the performance of the start-up. These conflicts can escalate into complex disputes. 

Investment disputes typically arise when investors who have invested capital in a start-up find that the company is failing to deliver the agreed results or performance indicators. 

If these investment issues are not resolved, they can escalate into shareholder disputes and, later on, into the basic bankruptcy of the start-up. Investors, who often hold shares as part of their investment, may challenge management decisions, strategic direction or the financial performance of the start-up. 

Such disputes require the right legal partners to help balance the expectations of both the start-up and the investor.