Tag: resolving director disputes

What started with such promise has now reached rock bottom.

Andrew Marsden

Unfortunately, this is a familiar tale, and it’s often a deeply distressing and challenging time for all involved.

Inevitably it will impact upon your business and its clients and customers and can have a devastating impact on staff and their moral.

When the trust is gone, and an acrimonious atmosphere pervades, it’s hard to keep emotions contained.

Reconciliation may not be easy (you might not even consider it a possibility), but the longer disputes are left unresolved the more likely it is that your staff will notice that something’s not right. Indeed, friction might be so evident that your clients and customers soon start to notice too.

No matter the cause, disputes are never good for business and it’s important you try and resolve yours as quickly, amicably and as cost-effectively as possible.

The first thing you should consider doing, before anything else, is getting some legal advice from someone who understands the litigation and other dispute resolution processes available and can provide support and guidance on the best way to achieve resolution. 

‘Commercial divorce’ can be complex, so it’s important you have someone helping you who is a specialist in the field with experience in such matters and knowledge of the different routes to resolution that are available to you. Having the right legal support in place from the start can make all the difference to the outcome you achieve.

The good news is it is now possible to engage a specialist barrister directly and without the need to have to pay for a solicitor as well. Engage an experienced and specialist barrister in this way and you may well find that the process can become surprisingly fast and cost-effective. You’ll also benefit from the continuity of having a barrister at hand to advise throughout the litigation and dispute resolution process.

Once you have engaged a barrister, they will be able to discuss your options going forward with you and check what provisions you already have in place, whether in the form of a shareholders’ agreement or articles of association. These constitutional documents should generally include dispute resolution mechanisms that can make the process much more straightforward. If you don’t already have any such provisions in place, your barrister can also help you with this.

Where reconciliation isn’t possible, and you decide to part ways, your barrister can assist in opening the lines of communication between all parties so that you can move forward towards resolution.

Will you need to go to court?

This is one of the most common questions I get asked by clients who have found themselves in the midst of a dispute.

As a specialist barrister with more than thirty years of experience dealing with shareholder and partnership disputes, my approach is always to try and achieve commercial resolution on the best possible terms, at the lowest possible cost, and, if at all possible, without having to go to court.

For the majority of cases, this means that the expense of litigation can be avoided. In fact, very often, resolution can be achieved in the early stages, sometimes through mediation, and even if the dispute is bitter and acrimonious.

If you find yourself in the midst of a shareholder or partnership dispute and would like some help and advice on the best options for moving forward to resolution, please do get in touch with me. An initial thirty-minute chat is completely free, and I’d be very happy to give you some guidance as to the next best steps to take.

Christmas – a time to reflect on your relationship

Andrew Marsden

Christmas gives us time to reflect. 

If your business relationship is going well, you might treat yourself to an extra mince pie. But if things are not going so well, you might find yourself asking questions like: ‘What am I doing this all for? Is it worth it? Is it time for change?”

Differences in opinion between those in business together are bound to happen. Clashes of personality occur. One person may become overly self-motivated or greedy. You may feel a degree of exclusion. There may even be dishonesty involved. Whatever the reason, rifts are inevitably going to be felt every now and again. Nine times out of ten, arguments will get resolved quickly. Both parties forget and move on. In other cases, reconciliation may not be so easy. 

Sometimes, relationships are strained to the point that they become irreparable.  If this is the situation you find yourself in don’t act impulsively or reactively. Take the time to consider the best course for you. Identify the measures that you need to take to protect the business and your interests in it. If you fail to do so you may find your dispute drags on, the business suffers and all you do is incur costs without making any real progress in finding a way forward out of the situation you find yourself in. On the other hand, with the right advice, planning and assistance in the implementation of that plan you might well find that the situation is resolved quickly, efficiently and cost-effectively.

Do: Enlist the best legal advice you can get as soon as you can. ‘Commercial divorce’ is complex and it’s important you are guided by an experienced specialist. You need a person who really knows the “in’s” and “out’s” in this area. You want advice from someone who not only fully understands the law and the litigation process but is also a master of all the other tools available to help resolve the position. All too often people delay seeking advice or turn to the wrong people and this can really backfire further down the line. The best course may well be to engage a specialist barrister from the start. You can now do this directly, going straight to a barrister and cutting out the “middleman”. This can ensure continuity throughout the process and it is surprisingly cost-effective too.

Don’t: Panic or let emotion get the better of you. If you’ve been personally impacted by a business relationship fall-out there are likely to be a lot of emotions involved. In the heat of the moment it can be difficult to determine between what feels right for you right now and what’s right for the business and for you and your interests in the longer term. Try to resist knee-jerk reactions. Approach the matter as calmly and as pragmatically as possible. 

Do: Check what provisions you have in place in any constitutional documents. They might offer a route to resolution. You are likely to have such agreements between you whether in the form of a shareholders’ agreement, articles of association or a partnership agreement. If properly prepared those documents should define responsibilities, assist in the smooth running of the business and include appropriate dispute resolution mechanisms. If not speak to your barrister and get them in place now before tensions rise and resolving issues becomes much more difficult.

Don’t: Assume you’ll need to go to court. Most disputes can be resolved without the need to issue any legal proceedings at all. Litigation really is the last resort. It can be costly and drawn out. Most “commercial divorces” can be settled out of court through negotiation; often via mediation. Even if your business relationship seems beyond repair, an experienced and specialist barrister can help to re-open those communication channels.

Do: Ask questions throughout. Most people who require legal help won’t have been involved in the process before. It’s completely understandable that you should have questions and concerns. Raise them all at any stage, and your barrister should be able to explain matters to you and bring you both clarity and confidence. Take a look at the infographic that I have prepared – see below:

which explains and simplifies the whole process: . Make sure you have complete faith in the person advising you and avoid finding yourself in a position you would rather not be in. 

Don’t: Be afraid to ask about costs. There is no reason why unexpected fees or hidden costs should arise. Choose a barrister who is transparent and upfront about costs from the outset. Engaging a barrister directly is often the most cost-effective way of obtaining a resolution and a way forward in what can feel like an intractable situation. Consider using the Bar Council’s Direct Public Access scheme to take advice directly from a specialist barrister from the outset. You might also even find it is more affordable than you anticipated it might be!

If you are in the midst of a shareholder or partnership dispute and would like some guidance on how best to resolve it, feel free to get in touch with me for a confidential no-fee initial 30-minute consultation.

Why resolve your partnership dispute with a specialist and experienced barrister

Andrew Marsden

When things go wrong between the partners or directors of a business, the red mist can descend and it’s the impossible to make rational decisions that will benefit any of those involved.

Getting expert specialist legal guidance is always the first step and below I explain in more detail how this might work for you.

Explaining the dispute resolution process in a nutshell

For the majority, taking the first steps to dispute resolution can be the hardest part of the process. I have spent many years working with clients navigating difficult shareholder or partnership disputes and I know that, all too often, those involved delay taking or turn to the wrong people for advice and live to regret it.

Dispute resolution and the legal process can be confusing. It may well be the first time you have faced something of this sort. To help I have prepared an “infographic” which seeks to explain what’s involved. You can get a copy here.

Instructing a barrister directly

You might also be surprised to know that you can engage a barrister directly instead of going through a solicitor. What does this mean for you? Well, it can streamline process, gives you immediate access to specialist expert advice and will often save you substantial costs!

What you can expect from Andrew Marsden

You may not be familiar with working with a barrister – it may even seem intimidating. That is why I have also prepared an outline of exactly what you can expect when working with me. You can obtain a copy here.

Establishing an effective working relationship

Every client I work with and the situation that they face is unique. But, what they all want is a practical and commercial solution that works for them. A collaborative working relationship is essential to achieving this. It is very much a two-way process. The service I provide must work for you. To achieve this I welcome open dialogue, regular review and feedback. When you engage a barrister to resolve your shareholder or partnership dispute it’s essential that you establish a good working relationship with clear lines of communication from the outset.

Cost savings and other benefits in going directly to a barrister

How much will it cost? Here complete transparency is key. There is no excuse for unexpected fees or hidden costs. It is imperative to be clear, open and straightforward. I agree all fees in advance so that there are no surprise charges and I bill regularly so you know where you are. Indeed, if your lawyer is unclear about the costs involved this should be a “red flag”.

Unknown to many, it is very often cheaper to engage a barrister directly rather than going through a solicitor. Solicitor’s firms generally face large overheads and those inevitably get passed down to you the client.

There are also other savings to consider. Going directly to a barrister can avoid significant delays. It reduces the chain of communication. Fundamentally, if you have a strong position you will know this quickly and can act accordingly. On the other hand, if your position is weak you can save yourself a great deal of time, trouble and money.

Engaging a specialist barrister from the very outset not only provides you with direct access to specialist advice but also ensures you avoid steps that might compromise the strength of your position further down the line. I will provide you with a clear “road map to resolution” on the best commercial terms possible.

Free 30 minute consultation

So how do you start the process to resolution? I offer a free 30 minute phone consultation. You will probably have a host of questions and I should be able to answer many of them for you immediately. So, if you’re facing a breakdown in your business relations, if your embroiled in a shareholder or partnership dispute or if your fellow directors/shareholders or partners are behaving in an unfair or prejudicial way please get in touch – an initial conversation won’t cost you anything so you’ve nothing to lose!