Where angels fear to tread
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Published: 1 Nov 2017
Being in business is like life itself: there can be so many twists and turns that the planned route map invariably needs to be adjusted so many times along the way.
The same is true for partners or fellow directors/shareholders during the course of a business relationship. In a family business, relationships can change, where the next generation wishes to take control or sibling rivalry affect the efficiency of a business.
In some cases the partners or directors can work out a way of parting company in an amicable way. However, more often than not, the parting is with difficulty or even acrimony.
Arguing the case in court for fair apportionment
This is where it becomes expensive, as lawyers and accountants need to be retained for arguing your case in court for the fair apportionment of the business between the parties, particularly where there is no shareholders' agreement in place, setting out the procedures for dissolving the company.
An alternative to court
An alternative to going to court to settle your differences is to apply for mediation. For a start it is a lot cheaper than going to court and you have the opportunity to influence the outcome. However, you have to be prepared to compromise so that a reasonable result is achieved for both sides. If you seek judgement in court, you are in the hands of the judge as to the outcome.
So think carefully, before you rush to instruct lawyers to make a claim for recompense through the courts, instead of considering a much cheaper mediation procedure. As they say "fools rush in…..".
If this has got you thinking and prompted some questions, please contact David Cane on 07749 080 806 or email [email protected].
