Board and partnership disputes

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

Discreet, efficient solutions to boardroom disputes

Although no one likes conflict, differing views and the debates that follow can turn into conflicts, resulting in boardroom and partnership 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 can include matters related to the business itself. Issues such as strategic priorities, related-party transactions, company control, and board processes can all lead to disagreements. Additionally, the question of how things are done, including the appointment of new directors, defining the board agenda, and succession planning, can be contentious. It is also the case that the personalities, behaviours, and attitudes of directors can be a trigger for conflict.

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 it can be highly damaging to the company’s performance, reputation and value.

They provide an exceptional level of support and advice, relating to some very complex employment law matters.

The employment team at Penningtons Manches Cooper always acts 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 matter.

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.

How we help our clients

Advice regarding failure to pay dividends or drawings

Addressing allegations of breach of fiduciary duties

Guidance on unlawful removals of directors

Negotiated settlements

Mediation and arbitration

We receive comprehensive responses from the team almost immediately.

The team are complete subject matter experts with searing intelligence across the board.

Penningtons have great experience in acting for senior executives and winning their trust.

The team at Penningtons are approachable, knowledgeable and engaged. Everyone you interact with offers support and assistance – no problem is too big, and practical and relevant advice is given.

Recent work highlights

Breach of contract claim

Successfully negotiating the settlement of a breach of contract claim on behalf of a senior director, achieving a commercially favourable resolution.

Release from restrictive covenants

Advising a managing director on their exit from a major international transport group of companies, and their release from restrictive covenants.

Boardroom and shareholder dispute

Achieving favourable financial terms following an attempt to remove our client from the board that resulted in a shareholder dispute, including the retention of all stock, the removal of post-termination covenants, and a non-executive position for the client.

High-value settlement for director

Advising and successfully negotiating a £1.2 million settlement of a complex and highly contested claim for a director and board member, including breaches of company fiduciary duties.