When disputes arise between small/family business shareholders

Summary

When disputes arise between small/family business shareholders or trust unit holders 

In this seminar, barrister John Nunns will examine solutions and remedies for trust beneficiaries and shareholders in private companies, when they find themselves in conflict.  Some of the areas he will look at include:

• Remedies for oppressed small family business co-owners in serious disputes.

Some common cases, problems and practical considerations – encouraging a pragmatic and collaborative approach to dispute resolution, to avoid ruinous litigation between co-owners, minimising delay and expense in bitter family disputes.

• Members statutory oppression remedy for conduct of a company’s affairs 

Examples of commonly recurring oppressive conduct, such as denial of access to information, improper exclusion from participation in management, oppressive conduct of management meetings, improper diversion of company assets to the benefit of the controller, excessive controller remuneration and unfair restriction of dividends; and

Remedies including right to information, Court orders including winding up the company, compulsory share purchase of oppressed members' shares, appointment of receivers, provisional liquidators and injunctions.

• The special situation of a trustee company
• The Commercial Court oppression procedure for small business companies – Supreme Court practice note – SC CC8
• Case examples of breach of trustee’s duties, fact situations and deadlock between trustees in dispute including denial of information, payment of excessive remuneration to beneficiaries or administration professionals, improper diversion of trust assets to the benefit of the trustee and business affairs and management in disarray and/or dispute or deadlock