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Shareholder's Actions

Shareholder’s Actions

If you require advice or assistance in relation to shareholder’s actions, Selachii LLP can help.

Shareholder actions can be used in a variety of circumstances, but are normally used by minority shareholders that are unable to influence the decision making of the company as a result of their minority shareholding.

We have assisted a number of clients including both shareholders and directors across a variety of sectors in relation to shareholder’s actions. Our specialist solicitors are experts in litigation, and fully understand when a shareholder’s action is necessary to protect your interests, or how to defend your rights as a majority shareholder or director against a shareholder’s action. We will act swiftly to utilise our intricate knowledge of court procedure and corporate law to ensure you have the best chance of securing a successful outcome. 

Our lawyers will work with you to establish what you need from our services, and build a tailor-made winning strategy around your goals. We know how challenging a shareholder’s action can be and how prohibitive to the running of your business. Contact us today to find out how we can help you.

What is a shareholder’s action?

A shareholder’s action is court action taken by shareholders against the company in which they hold shares. Shareholders can bring an action before the court where they feel like they are powerless to influence change within the company, as a result of their smaller shareholding, or because their class of shares does not allow them to take part in the management of the company. In addition, shareholder’s actions can be used to take action against directors that have abused their position. In recent years, shareholder’s actions have been used to bring claims against large financial institutions which misled investors about their strength. There are a wide variety of circumstances that may lead you to consider a shareholder’s action, but ultimately litigation should always be a last resort. Prior to commencing proceedings, our lawyers will work with you to see if a solution can be found outside of the court room.

When can a shareholder’s action be used? 

Different shareholder’s actions may be used under different circumstances, and which route to retribution you choose to use will depend on the circumstances and your desired outcome. If you are unsure about which shareholders action is best for you, speak to our expert solicitors who will be able to advise you fully on your personal circumstances.

Unfair prejudice

The Companies Act 2006 s 994 outlines that a shareholder who believes they are being treated in an “unfairly prejudicial” manner, may seek relief from this unfair prejudice from the court.  This normally covers the circumstances where a shareholder has a minority shareholding, and the other shareholders act in a way which for example, reduces the value of this shareholding, excludes the shareholder from management or divert business to other interests for their personal benefits. Our lawyers will be able to advise you on whether an unfair prejudice action is the right means to achieve your aims.

Derivative Action

You may be able to bring a derivative action where a director has abused their position in some way. This can include a breach of director’s duties, but may also be where the director has been dishonest or negligent. Under a derivative action claim, shareholders act on behalf of the company to bring a claim against the director in question. Usually, the remedy will be payment of damages to the company, or where appropriate accounts of any gains made by the director as a result of his abuse of position.

We can help secure the best outcome for you in relation to a shareholder’s action.

We do this by using our extensive negotiating and advocacy skills, coupled with vast knowledge of the law and procedure, to design a case winning, tailor-made, strategy. We always aim to resolve your legal problems as quickly as possible. If you would like to know more about how we can assist with an injunction, please contact us.

Contact our Expert Shareholders Action Lawyers, London

We know all legal disputes and difficulties are different, and that is why we don’t believe in simply handing out one-size-fits-all solutions to problems. We will focus on your specific circumstances before working out the best and most cost-effective way of helping you achieve your aims.

Selachii is a dynamic litigation law firm based in Kensington, London. We put the best interests of our clients at the heart of everything we do. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation. To discuss you case with us, contact us now on 0203 811 7723 or complete our online enquiry form and a member of our team will get back to you right away.

How Selachii Can Help

Fraud is an issue that demands extreme tact as well as often needing great doggedness and attention to detail. We don’t believe in simply handing out one-size-fits-all solutions to problems. We will focus on your specific circumstances before working out the best and most cost-effective way of helping you achieve your aims.

Selachii is a dynamic litigation law firm based in Kensington, London. We put the best interests of our clients at the heart of everything we do. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation.

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