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Partner and shareholder disputes

Partner and shareholder disputes can be damaging and sometimes fatal to a business.  The input of an experienced forensic accountant at an early stage can help to focus the financial aspects, and help the parties resolve issues before any lasting damage is done to the business.

The key to many such disputes is the value attributed to the business and the individuals interest in the business, either by partnership share or by share ownership.  Our general business valuation experience can be extremely valuable in assisting parties to reach a resolution that they can all live with.

Understanding the parties views and positions is key to providing constructive advice on the resolution of the dispute.  Managing their expectations as well is critical and can lead to a far more cost effective resolution of the dispute.

 

Example

We assisted the partners of a professional partnership to sort out the exit of one of the partners and the continuation of the partnership by the remaining partners to all partners satisfaction.  This was achieved by holding a mediation between the parties so that views could be aired and solutions discussed in a sensible and non-confrontational manner.  The involvement of an accountancy trained mediator helped the parties to break their deadlock, and to start discussing the process of retirement and the financial implications.

 

The minority shareholder in a manufacturing business was fired as a director and commenced proceedings for unfair dismissal.  Following on from his successful employment action he commenced a claim under the Companies Act for unfair prejudice and sought an order for the purchase of his shares at fair value.  We scrutinised the company accounts to identify the true profitability after eliminating the unnecessary director costs and other non-recurring costs, in order to place a value on the minority shareholders interest.  We then assisted with the submissions to the independent expert appointed to determine the dispute.

 

Our instructions in a shareholder claim arose following the alleged misrepresentation of the value of the company when a proportion of shares were sold to the minority shareholders.  We were instructed to investigate the actions of the majority shareholder and to give our opinion on whether any of the statements made were false or misrepresented the financial health of the company.  We are able to conclude positively on a number of the heads of claim and provide the Court with analysis of the issues and existing evidence surrounding those inconclusive heads.

Contact Prime today

Any of the team would be pleased to discuss cases with you, to ascertain how we can help and to give you an indication of the scope and cost of the work required.

Contact us on 0121 711 2468 or email: expert@primeforensic.co.uk