What happens if you don’t have a carefully prepared shareholders agreement; shareholder disputes
We were instructed by one of the two joint shareholders in a company to resolve a shareholders dispute. The company had been set up by two friends to produce and market food products. There was no shareholder agreement in place although it was accepted that each party held 50% of the shares.
We reviewed the matter and the shareholding and advise our client as to the best way to proceed.
Our client made an offer to take over outstanding loans of the company and to repay the other shareholder a further loan she had made to the company from the distributable profits of the company over the next few years. In return the other shareholder was to enter into a share transfer agreement and sign a stock transfer form for transfer of her shares to our client. The offer made was generous but a failure by the other party to appreciate it meant the offer was not taken up. We then advised our client how to move forward in the face of a difficult situation.
We presented our client with various options as to how he could proceed and ultimately these were beneficial to our client allowing him to be resolve the issues and the dispute that had arisen within the company and to move forward with the business.
We were instructed by a professional who had set up her company with another professional. Both were joint shareholders. No shareholders agreement was entered into between the parties. For approximately two years the business went well and both parties were happy.
However, when our client decided to dedicate her full time to the business and wanted to exercise more management and financial control the other shareholder became unhappy. Our client realised that the business she was qualified to run and which she had set up was no longer in her control.
We advised our client as to the best way to proceed to resolve the shareholders dispute. We even advised our client that due to the tense situation she could expect a director’s resignation from her co shareholder. A few days letter the resignation arrived; our client was not at all surprised by the resignation because she said we had “prepared her well to expect it”.
We advised our client so that ultimately the matter was resolved to our client’s great satisfaction.
"Shubha Nath is my go-to lawyer. She provided my department with commercial legal services for the best part of 10 years. She listens carefully to what the business requires, is clear in her explanation of complex legal agreements and frameworks and is incredibly fast at turning round documents. I was so impressed by her I've recommended her company Nath Solicitors to other businesses."Testimonial From Bernard McKeown
"Shubha, I'd just like to thank you for helping me to come to an amicable settlement with my former company co-directors so quickly and effectively. The advice and suggested approach certainly worked very well for me and I also felt a sense of safety and control being mentored through a very daunting process. You are brilliant at what you do and you helped me to cope with a very stressful situation. I would not hesitate to recommend you and Nath…Testimonial From Stephan Hepton
“I would like to thank and recommend Nath Solicitors and Shubha personally for all your professional advice and help. We have a variety of business interests from Medical and Dental to Analytics and Artificial Intelligence; I am extremely impressed how Shubha has been able to advise in all of these fields for a variety of unrelated projects. We have been particularly impressed with hard work, dedication, professional approach and personal touch. Dr Chetan.”Testimonial From Dr Chetan
I live in Saudi Arabia. Although thousands of kilometers separated us, I picked up the phone and talked to Shubha and I asked her to help me in what I believed was a fraud case. She answered gladly. She was smart, honest, and professional; she has been receiving my calls, letters and emails for more than one month did not seem to mind at what time I communicated with her and it was any time and she always responded quickly. Shubha…Dr Aldarwish ( International client)
We are pleased to note our satisfaction with the standard of service, offered to us by qualified and efficient team of Nath Solicitors. This is a Firm with high integrity and strong, traditional, values focusing on providing the utmost levels of customer satisfaction but don’t just take their word for it, take time to review their customer testimonials. Shubha Nath, who has been providing services to our company, has shown how passionate she is about her job and has delivered…MD of Security Company Dispute Resolution Testimonial
Client comment on company incorporation and advice on a shareholders agreement prepared by Shubha Nath. We felt well advised and Shubha protected our interests immaculately and we are truly very grateful to her for all her help in securing our interests. Director Food Company.Director of a Food Company