Shareholder Differences

Typically, there is a tussle for control over the business arising from a good relationship turning sour and shareholders refusing to co-operate with each other.

Breach Of Duty As Director

There may be occasions where a Director is not acting in the interests of the other shareholders or in the interest of the Company as a whole, or where there is a breach of fiduciary and other duties by the Director.

A shareholder who is also a Director may carry out acts that hamper access by another shareholder to the business and affairs of the Company or which prevent access to its accounts or which hamper business operations or proper business decisions.

Deadlock & Business Standstill

Parties may be deadlocked and the business may run into a stalled position where disputing parties own an equal number of shares and have equal voting power and neither is prepared to give way to the other, nor are they able to iron out their differences.

Conflicting Positions

Differences may be over various matters from managers or the Company Auditors appointed to the kind of business activities conducted or the way the business is run, the number or type of employees, the amount of contributions in terms of time and attention spent or lack of it alleged to be put into the business of the Company by each Director or shareholder, financial matters, business strategies or the future business direction of the Company.

The investor wishes at the very least for recovery of the amount that he has invested, but sometimes the business has suffered a considerable loss and there is a need then to then consider how best for the investor to exit the situation with minimal loss.

Options For Resolving A Shareholders’ Dispute

This may include offering to buy out a party, appointing an auditor to look through the accounts to do up a valuation of the shares of the Company, voluntary liquidation and appointment of a liquidator, attending a mediation session to explore settlement, and in the last resort, winding up the Company.

What Role Do We Play?

  • Assess the facts and identify the issues
  • Advise you on what steps to take
  • Collate the evidence needed
  • Appoint accounting professionals to analyse financial records
  • Advise you on the best form of dispute resolution
  • Guide and prepare you for litigation /arbitration / mediation

WE ARE HERE TO HELP

As Singapore’s largest community law firm, HOH Law Corporation brings legal services to the masses and to the ordinary man on the street. With island-wide offices and a team of trained legal professionals, our mission is to combine our extensive experience with our resources to focus on the needs of our clients and commit ourselves in heart and mind to provide affordable and quality legal services to them.