Corporate disputes

Introduction to corporate disputes

There is vast potential for disputes to arise within a corporate context. Included within this subtopic is practical guidance and/or an overview of some of the issues pertinent to claims involving:

1. •

   directors

2. •

   agents

3. •

   shareholders, in particular, guidance is provided on:

   1. ◦

      unfair prejudice claims

   2. ◦

      petitions to wind up on the just and equitable ground, and

   3. ◦

      derivative claims

In terms of relief for minority shareholders, bringing an unfair prejudice petition is the primary route available, but each of the three shareholder actions listed above can be in effect deployed as a means to achieve proper value for a member in respect of their shares.

The rule against reflective loss and the following common corporate dispute scenarios are also addressed in this subtopic:

1. •

   joint venture disputes

2. •

   breach of warranty claims

Directors

Tasked with managing the day-to-day business, a large number of corporate disputes will involve company directors.

Typically directors of companies benefit from a limited liability status, where they are able to trade and enter into arrangements on their company’s behalf while being personally