We often unravel problems relating to shareholdings in private companies. Our solutions will depend upon where the balance of power and your interests lie. We are strategic and factor your commercial realities into the equation when working out solutions for you.
Shareholder rights problems we solve:
- Can the company buy back shares and what are the tax issues
- What rights to minority shareholders hold
- How do you value shares in private businesses
- Can you swap shares in a company
- Resolution of the problems arising when the shareholders are in dispute
- How will the shareholders be taxed on disposals of shares
What we do
Shareholders do have rights enshrined by the Companies Act. But, the rights enshrined under the Companies Act are very limited. Therefore, often shareholder rights have been enhanced by rights set out in the company’s articles or shareholders’ agreement and agreed upon by all shareholders. We work out the options for a shareholder.
Companies do need to re-organise share capital, buy back and cancel shares and issue new shares. We solve the problems this can present from the need for shareholder approval, how the transaction should be structured and tax issues for the individual shareholders.
A large practice area for us revolves around resolving shareholder disputes. Disputes can arise for a variety of reasons most of which are personality conflicts and disagreements over the running of the business. We resolve problems for large and small companies working with majority and minority shareholders. Many disputes are compounded by a lack of documentation and we are well versed in dealing with a “mess”.
If you have a problem please do speak to us. We are always discrete.