Do you know how many companies get shut each year as a result of a shareholder dispute in the UK? Differences between shareholders open the door to mistrust and can sink the company or firm, even before getting any name and fame in the market. It is an issue that worries us all a lot because it is sad to see how a company and years of effort can promptly dissipate for not having taken action on it.
Below presented are some ways to solve a shareholder dispute UK:
1. Identify problems beforehand
Just like developing a business Plan, it is a good idea for shareholders to sit down together to discuss potential problems and come up with solutions before this occurs. For example, they could establish how long each shareholder must stay in business and how personal issues, such as illness, will be handled.
Taking enough time to talk about what is essential for the company can prevent future conflict and communication breakdowns.
2. Clear communication
If any of the shareholders are not “pulling even,” it can generate resentment between them. One way to avoid this situation is to distribute the work and assign responsibilities to each member.
This can be accomplished with a short weekly meeting where the workload is discussed. With a fruitful division of labor, the strengths of each partner will be better utilized. For example, instead of dividing the tasks in half (if there are two partners), one could focus on marketing while the other carries out the daily operations of the business. This division is made based on the qualities of each founder.
3. Keeping priorities straight
For many shareholders, making even the smallest business decisions can be a painful and time-consuming process that slows the trajectory of the business. Learning how to negotiate with shareholders effectively will help in avoiding potential problems.
When negotiating an important decision, it is recommended that the partners focus on the objectives and not on other issues. If you are about to decide between hiring an employee, one partner might want to hire someone that the other is not so sure about. One solution could be to define a trial period of three months. Thus, both sides win.
Whatever the reason for the Shareholder Dispute, Alfred James & Co Solicitors LLP can help you out in the best way possible.
We are well known for the tenacious perspective on bringing such disputes to an end. To learn more, contact Alfred James & Co Solicitors LLP.