09-04-2008
Rise in business disputes
A leading business dispute expert is predicting a rise in the number of boardroom and shareholder fallouts in Gloucestershire as the credit crunch starts to bite.
Philip Radford, of BPE Solicitors, says that when the going gets tough for many businesses, boardroom bust-ups and shareholder disquiet often follows.
Philip, a partner in the dispute resolution team at the Cheltenham-based practice, says that the number of people approaching him for help to resolve disputes is on the increase.
“Common causes of disputes include disagreements over a company’s strategy, levels of dividends for shareholders and power struggles between those in charge,” said Philip, an experienced mediator.
“Often those involved feel there is no alternative but to part company and that can be when the trouble really begins. The business is frequently seen as both people’s “baby” and no-one wishes to part with it.
“The courts have a wide range of powers to resolve such disputes, but rushing straight to court can be expensive.
“Like any relationship, keeping communication lines open is often key to finding a solution. Relying upon the support of a professional, with a toolkit of potential solutions, including negotiation, litigation and mediation, can often speed up the resolution process before the business at the middle of the dispute suffers as a result of internal wrangling,” added Philip.
BPE’s dispute resolution team has found itself being asked to help resolve a number of partnership, shareholder and boardroom disputes recently.
These include using mediation to help to settle a boardroom dispute when a shareholder was dismissed as a member of staff. He made a court claim asking that his shareholding be purchased by the majority shareholder. His entitlement to such an order and the value of his shareholding was hotly contested.
A partner at a solicitors’ practice in the South West approached BPE when his former partners refused to accept the terms of his resignation from the partnership and to pay out the significant capital he had invested into the business. Arbitration proceedings were started and, as a consequence, settlement terms were negotiated, resulting in the full recovery of the partner’s capital and additional compensatory payment and costs.
“Like any relationship breakdown, sticking your head in the sand and hoping it will go away will not solve the problem. Facing up to the issues at the earliest opportunity is what is required,” said Philip.
Philip Radford is a partner within BPE's commercial dispute resolution team. He is an experienced litigator who is not only cost-conscious on behalf of clients but also appreciates that commercial disputes can be satisfactorily settled out of court.
He is an accomplished mediator who has a regional reputation for dealing with all types of commercial disputes, including commercial contractual claims, intellectual property, claims relating to breach of directors’ duties, corporate warranty claims, shareholder and partnership disputes and professional negligence claims.
Contact him on 01242 248 247 or email philip.radford@bpe.co.uk
Philip Radford, of BPE Solicitors, says that when the going gets tough for many businesses, boardroom bust-ups and shareholder disquiet often follows.
Philip, a partner in the dispute resolution team at the Cheltenham-based practice, says that the number of people approaching him for help to resolve disputes is on the increase.
“Common causes of disputes include disagreements over a company’s strategy, levels of dividends for shareholders and power struggles between those in charge,” said Philip, an experienced mediator.
“Often those involved feel there is no alternative but to part company and that can be when the trouble really begins. The business is frequently seen as both people’s “baby” and no-one wishes to part with it.
“The courts have a wide range of powers to resolve such disputes, but rushing straight to court can be expensive.
“Like any relationship, keeping communication lines open is often key to finding a solution. Relying upon the support of a professional, with a toolkit of potential solutions, including negotiation, litigation and mediation, can often speed up the resolution process before the business at the middle of the dispute suffers as a result of internal wrangling,” added Philip.
BPE’s dispute resolution team has found itself being asked to help resolve a number of partnership, shareholder and boardroom disputes recently.
These include using mediation to help to settle a boardroom dispute when a shareholder was dismissed as a member of staff. He made a court claim asking that his shareholding be purchased by the majority shareholder. His entitlement to such an order and the value of his shareholding was hotly contested.
A partner at a solicitors’ practice in the South West approached BPE when his former partners refused to accept the terms of his resignation from the partnership and to pay out the significant capital he had invested into the business. Arbitration proceedings were started and, as a consequence, settlement terms were negotiated, resulting in the full recovery of the partner’s capital and additional compensatory payment and costs.
“Like any relationship breakdown, sticking your head in the sand and hoping it will go away will not solve the problem. Facing up to the issues at the earliest opportunity is what is required,” said Philip.
Philip Radford is a partner within BPE's commercial dispute resolution team. He is an experienced litigator who is not only cost-conscious on behalf of clients but also appreciates that commercial disputes can be satisfactorily settled out of court.
He is an accomplished mediator who has a regional reputation for dealing with all types of commercial disputes, including commercial contractual claims, intellectual property, claims relating to breach of directors’ duties, corporate warranty claims, shareholder and partnership disputes and professional negligence claims.
Contact him on 01242 248 247 or email philip.radford@bpe.co.uk
