Shareholder disputes

Funding the fight

On the face of it, majority shareholders who control the Company (and its finances) have a massive advantage in any fight with the other shareholders in that they can pay their legal fees using Company funds.

Even with a great legal case, a minority shareholder (who has often been booted out of employment by the Company) has only limited funds and is no match for the funds at the disposal of the Company.

However, in most genuine shareholder disputes, the courts will not allow Company money to fund what is essentially a personal battle.

The Company does not exist to serve the majority shareholders and spend its funds on their personal legal fees so the courts will be willing to prevent any attempt to use Company funds in the battle, by granting an injunction if necessary