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Funding the Fight

Whatever your financial position, we can help you make a shareholder dispute a fair fight.

Legal disputes surrounding shareholder rights can prove expensive for everyone involved, so it pays to know the financial issues at play and your options for funding the fight.

It makes sense that majority shareholders who control the company (and its finances) are at a substantial advantage when facing disputes with other shareholders, as they will typically try to use company funds to pay their legal and professional fees. But in reality things aren’t this clear cut.

Even with a good legal case, a minority shareholder with limited funds (and who has often been ousted from employment by the company) can prove no match for the funds at the disposal of the company. So making it a ‘fair fight’ is often one of the first challenges to be met in any claim by a wronged shareholder.

In reality, in most genuine shareholder disputes the courts will not allow company money to be used to fund what is essentially a personal battle. Courts recognise that companies do not exist to serve only majority shareholders and pay their personal costs, so they will be willing to prevent any attempt to use company funds in a shareholder dispute, by granting an injunction if necessary.

To support minority shareholders who have limited or even no funds, there are a range of funding options. Wronged shareholders often do not have to have the personal funds to be able to pursue a genuinely good and valuable claim. It is always possible to find a way to fund a worthwhile case.  

When looking at your options for pursuing and funding a shareholder dispute, we have a strong track record in successfully supporting shareholders with a wide range of funding options.