Shareholder Agreements and Disputes
We have provided legal advice to directors and shareholders on disputes and company issues in Western Australia for 25 years.
Our practice is located outside of the Perth CBD and because of this our hourly rates and fixed prices for commercial work and for litigation are 20% lower than the standard rates charged by most Perth law firms. Our rates are extremely competitive compared to the rates charged by other commercial law firms.
We can act for parties in litigation on the basis of a fixed, affordable, fee paid monthly as opposed to charging an hourly rate. If we are engaged on that basis you can pay a set fee, often at a discounted rate, in return for us remaining on the record as acting for you in the action for a fixed period. During that fixed period we will represent you and deal with whatever matters arise in the litigation during that time, including all court appearances and drafting of all court documents.
Directors control companies and how they carry on their businesses.
They are accountable to the shareholders for the way they conduct the company’s business.
Companies can be governed by their company constitution or by the replaceable rules set out in the corporations Act 2001 (Cth) or by a combination of both.
Disputes between directors and shareholders may arise because of:
- Directors breaching their duties as a director;
- Disagreements about the company’s strategic direction and management;
- Withholding dividends or payment of dividends;
- Disagreements about the amounts of salaries and profits paid as dividends;
- Conflicts of interest, including directors having personal interests in other companies or businesses;
- Fraud or illegal conduct by directors, including suspicions and allegations of misappropriation of company funds;
- A lack of transparency or denial of requests to provide financial and accounting information;
- Certain directors or shareholders being excluded from meetings or management;
- Breaches of the Company Constitution, Replaceable Rules or Shareholder’s Agreements; and
- Insolvency and liquidation.
If you are a director or shareholder in a company and are involved in, or are warried that you are about to become involved in a dispute, choose lawyers to represent you who are experienced in these areas.
The Corporations Act 2001 (Cth) s 233 allows shareholders to apply to the Court for relief where an act or lack of action or a propose act or proposed lack of action by a company is contrary to the interest of the shareholders, or, amounts to oppressive, unfair or discriminatory conduct against its members.
The corporations Act 2001 (Cth) s 233 gives the Court broad power to make appropriate orders if it finds that the company’s conduct is oppressive, including:
- Winding up the company;
- Making orders regulating how the company conduct its affairs in the future;
- Ordering, restricting or placing conditions on the sale or purchase of shares;
- Authorizing a member of the company to commence proceedings on behalf of the company; and
- Appointing a receiver or receiver and manager of the company’s property.