Advised the director and majority shareholder of a multinational jewellery group with operations in Hong Kong and Mainland China in a complex family and shareholder dispute following his ouster from management. The dispute concerned control of the business and the protection of company assets. Advised on strategic avenues to secure access to corporate documents and on shareholder remedies available in response to the breakdown in governance.
Shareholder’s Dispute
In an increasingly dynamic market, businesses must continually adapt to changing commercial realities, strategic pressures and emerging risks.
Inevitably, change is often accompanied by internal friction and resistance. Disputes may arise where stakeholders hold differing visions for the business, resist necessary change, or sometimes through the pursuit of personal interests at the expense of the company. Where there is a clear misalignment of interests or a breakdown in trust, decisive and strategic action is required to safeguard one’s interests.
We recognise that shareholder disputes rarely engage legal issues alone. They typically arise against a backdrop of competing commercial priorities, strategic tension and strained personal relationships. Consequently, these disputes frequently involve a delicate balance between protecting significant commercial interests and managing the personal consequences of a fractured business relationship, whether between partners, friends or family members. Having guided many clients through shareholder disputes from inception to resolution, we are well placed to help navigate the difficult judgments such situations demand, with advice that is both legally rigorous and commercially sensitive.
We advise on the full spectrum of shareholder disputes, acting for majority and minority shareholders, founders, boards, family offices and investors. Our experience includes disputes arising from deadlock, exclusion from management, minority shareholder oppression (unfair prejudice), breaches of shareholders’ agreements, fiduciary breaches, share dilution, contested transfers, governance failures and disputes tied to insolvency or business separation. It is our approach to work closely with clients to identify the real source of the dispute, assess the available leverage and determine the course of action best aligned with their priorities.
Experiences
Advised the minority shareholder of an liquid gas petroleum (LPG) business in a shareholder oppression dispute involving the alleged diversion of corporate funds and transfer of valuable contracts out of the company without consent. Acted in unfair prejudice and derivative proceedings, and achieved a successful buyout of the minority’s interest by the majority shareholder.
Advised the director and majority shareholder of an education conglomerate in a contentious shareholder dispute with a minority shareholder and former business associate concerning attempts to wrest control of the company. The matter involved sustained pressure tactics, including defamatory conduct. Advised on strategic defensive measures, reputational and legal risk mitigation, and steps to re-establish management control.