The legal consequences depend on the relationship between the parties. A dispute between shareholders of a company is legally different from a dispute between parties to an ordinary commercial contract.
First steps
Identify:
- the legal relationship;
- the disputed obligation or decision;
- relevant contracts;
- Memorandum and Articles;
- shareholder agreements;
- board and shareholder resolutions;
- financial and communication records;
- any dispute-resolution clause.
Possible solutions include negotiation, internal company procedures, buyout, mediation, arbitration or court proceedings.