When a dispute arises in a joint-stock company, it is essential to preserve the good image of the company by finding an immediate solution. This therefore amounts to calling on a professional in the field for whom this type of problem has no secrets. At OLS Quebec, this is what we know how to do. We show you in the rest of this article, how to manage a conflict in a stock company.
Possible causes of a conflict between shareholders
When facing a conflict in a joint-stock company, several reasons can be at the root of this. One of the main sources of disagreement is the management of the company, which is bound to evolve over time. It is therefore possible that the leaders of the company disagree with regard to the evolution it should follow. This eventually leads to a separation of shareholders. In this kind of business, the implementation of a business strategy can also lead to discord. It is obvious that each party has its own idea about the development of the company, from which arise different thoughts. This cause of conflict is particularly noticeable among small and medium-sized enterprises. Indeed, in such a company a handful of people are shareholders, administrators or managers, which quickly gives rise to litigation. In order to function properly, a company inevitably needs employees. Managers must therefore recruit and decide on the benefits to be granted to their employees. All of this is part of the management of the company’s workforce, which will not stop growing according to its evolution. The decisions to be taken at this level can also sow disagreements between the shareholders if they cannot agree on the strategy to adopt. These are just a few examples of possible causes of shareholder conflict. If you find yourself in one of them, immediately call a labor lawyer to settle your dispute.
Calling a lawyer to manage a dispute in a corporation
The labor lawyer is a specialist in commercial litigation who is able to provide professional services to quickly resolve a conflict between shareholders. In Montreal, our firm OLS provides everyone with lawyers experienced in business disputes. Among other things, our labor lawyers will represent you and strive to defend your interests according to the rules of the trade. Although a joint-stock company has its own lawyer, it is preferable that each shareholder in disagreement finds his own representative.
It is for this reason that the lawyers of the firm OLS will ensure that their clients return home with their heads held high with the share that is due to them. In the event that you need to buy out your partner’s shares, we can help you obtain financing if you do not have enough cash. It should be noted that a dispute between shareholders does not rule out the option of an amicable agreement. As defenders of your cause, we can therefore offer you a separation negotiation with your partner. By talking amicably, we will help you find a fair and equitable solution for everyone.
The different methods of settling a conflict between shareholders of a company
During a dispute between shareholders, the first step is the analysis of the agreement which is a contract which stipulates the way in which the conflict will be settled. It is therefore important to consult a labor lawyer to understand the content of this agreement. You will then have to choose an advantageous clause for your case between:
- the first refusal;
- redemption clauses and;
- the shotgun clause.
Being assisted by a professional from the OLS firm will allow you to make the best choice. To tell the truth, each of these clauses has its particularity and to use them to your advantage we have the necessary experience to support you. Instead of taking their dispute to court, we prefer to recommend arbitration and mediation to our clients. They can thus resolve their conflict between shareholders confidentially and more quickly. Although without a shareholder agreement, it is impossible to force a partner to submit a dispute to arbitration, it remains a more advantageous option. To settle a dispute in a joint-stock company, you must therefore contact a lawyer who specializes in commercial disputes.
To this end, the Montreal-based firm OLS helps you find the professional you need to overcome your discord between business partners
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