Board and partnership disputes

In accordance with their fiduciary duties to the organisation, directors and partners have a responsibility to implement good governance. The board is expected to operate collegially. However, even with the best structures in place disputes between partners, directors and the board frequently happen.

Although no one likes conflict, differing views and the debates that follow can turn into conflicts resulting in boardroom disagreements that must be dealt with properly and promptly to prevent them from developing into acrimonious disputes that undermine the board’s effectiveness and the company’s performance.

The list of possible sources of conflict is endless and includes issues related to the business itself.  For example:

• what is being done - strategic priorities, related-party transactions, company control, board processes
• how things are done - appointment of new directors, defining board agenda, succession planning
• who is doing things - personalities, behaviours and attitudes of directors.

How the dispute is managed and dealt with will determine the scale of disruption to the business and the duration of its impact. Boards strongly dislike resorting to litigation to resolve their differences as litigation can be highly damaging to the company’s performance, reputation and value.

Our employment team at Penningtons Manches Cooper always act discreetly and with your reputation in mind. We can assist in reaching a negotiated settlement of the dispute or engage a mediator or arbitrator, if necessary, to successfully resolve the dispute. Where matters remain unresolved, we can advise and provide representation for litigation, particularly if there is a question regarding the proper application of the law.