A company dispute should first be analyzed against the Companies Act, Memorandum, Articles, shareholder agreements, board decisions and the conduct complained of. The appropriate remedy depends on whether the dispute concerns management, ownership, voting, share transfers, misuse of authority or prejudice to shareholder interests.
Possible approaches
Depending on the facts, the parties may use:
- negotiation;
- shareholder or board meetings;
- contractual dispute-resolution mechanisms;
- mediation or arbitration where validly agreed;
- applications to OCR on administrative matters;
- court proceedings.
Shareholder protection
The Companies Act provides specific remedies where directors or officers act beyond their authority or where company affairs are conducted in a manner prejudicial to a shareholder’s rights and interests.
Company claims
In specified circumstances, qualifying shareholders can bring proceedings on behalf of the company where the company itself fails to enforce its rights.