The directors of small private companies are often either equal shareholders of the company or represent related entities such as their spouses or family trusts who hold shares on behalf of the directors’ family interests. Additionally, directors may have different operational roles in such companies with a particular director being tasked with the management of the operations or finances of the company.
In these circumstances, a dispute between directors such as in relation to the commercial strategy employed by the company or the financial reporting of the company could escalate to a dispute between equal shareholders with equal board representation. An additional layer of complexity may exist if there is a breakdown of trust and confidence with one director lacking access to the books and records of the company or other necessary information due to the historical role undertaken by that director.
Rowe Bristol Lawyers has extensive experience in advising and representing clients with respect to directors’ disputes, including in relation to:
- corporate and individual clients seeking access to books and records of the company;
- seeking remedies against oppressive conduct pursuant to section 233 of the Corporations Act 2001 (Cth);
- seeking remedies available against directors breaching their duties to the company and shareholders pursuant to the requirements of the Corporations Act 2001 (Cth);
- seeking urgent interlocutory and final injunctions to prevent damage to the company;
- the appointment of an administrator or receiver to the company;
- if a dispute cannot be resolved, providing advice and representing clients in seeking a winding up of the company, including on the basis of:
- oppressive conduct pursuant to section 461(1)(f) of the Corporations Act 2001 (Cth); or
- just and equitable terms pursuant to section 461(1)(k) of the Corporations Act 2001 (Cth);
- providing advice and representing clients in defence of proceedings commenced against the client or the company.
If you require legal advice in relation to directors’ disputes or any other legal matters, please contact us to arrange a meeting so that we may consider your specific circumstances.
The above information is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.