There is not just one reason why shareholder disputes happen. In fact, there are several reasons why it happens. However, the most common reason happens to be that someone feels like they are owed more money than was originally agreed upon. No matter what the disagreement is about, shareholder disputes can have serious impacts on a company. It can potentially lead to financial losses and damage that can be difficult to recover from. Principle Insolvency is here to share some tips that can hopefully help resolve shareholder disputes before you get to that point.
How to Solve Shareholder Disputes
Following are some of our best tips to help you resolve shareholder disputes before they have a lasting, negative impact on your company.
– Communication: It can’t be understated how important communication is when resolving shareholder disputes. It is imperative that there is honest and open communication between all parties involved. When communication is open, it can help you get to the bottom of the cause of the dispute. This helps a resolution to be made quicker and more efficiently. Finding a resolution that is desirable for all parties is vital.
– Professional Advice: While it might sound ideal to resolve shareholder disputes in house, sometimes, that isn’t the answer. There are often emotions involved which can make a resolution much more difficult. Hiring a mediator or professional to act as the third party that has no skin in the game can be the answer. Finding someone neutral is often necessary.
– Explore Options: There might be more than one option to resolve a shareholder dispute. Sometimes mediation is the answer while other times negotiation or legal action might be key to resolution. There are going to be advantages and disadvantages to all of the options before you; you just have to decide which one is the right fit. Look at the specific circumstances to your situation to help you choose the best course of action.
– Compromise: Often, the best way to come to a resolution is to compromise. While this can be difficult, it is something that you should be prepared for when dealing with a shareholder dispute. All parties involved should come to the table ready to compromise in one way or another. Having an open mind and willingness to listen to the point of view of others around you can be a great start on the road to resolution.
Insolvency Services in Auckland, Hamilton, Levin & New Zealand Wide
If shareholder disputes have put your company at risk of insolvency, it is time to turn to Principle Insolvency to help you figure out the best course of action to take. We always want to do what is best for your company as we work with you to find a solution to the challenges and struggles that you’re having. The professionals at Principle Insolvency will do everything in their power to help you get out of the financial predicament that you find yourself in. Call us today!