When shareholders fall out: settling early

A shareholder dispute can take two years and most of the company's value. Most of them settle in the first six weeks, if someone insists on it.

By the time a shareholder dispute reaches a lawyer, both sides have stopped talking and started collecting evidence. The job is to work out, quickly, what each side actually needs and whether the company can pay for it.

Read the agreement first

Most shareholder agreements have a deadlock clause, a buy-out mechanism or a valuation formula that nobody has read since signing. It usually decides the dispute before anyone sues.

Price the fight honestly

Litigation to trial costs a mid-sized company a year of management time and a sum that would have bought the other side out. We put that number on the table in week one.

Settle on a page

The deals that hold are simple: who leaves, what they are paid, over what period, and what they can say afterwards. One page, signed the same day, and the company gets back to work.

Helen Marsh, Senior Partner, Disputes: woman in her fifties

Helen Marsh

Senior Partner, Disputes