Corporate Disputes

Corporate disputes arise from the conflict of interest of shareholders. Corporate dispute is appeal of decisions taken by the sole executive or collective executive body of the organization. These include disputes related to reparation of damage caused by the management of the company, including those initiated by shareholders due to failure to disclose information about corporate activities. This category also includes cases of recognizing the rights to shares related to dividend payments, disputing deals, countering hostile acquisitions (raider attacks).


Corporate disputes can be subdivided into two categories:

  1. Internal corporate disputes when both parties represent the same legal entity (Nowadays corporate disputes are an integral part of civilized business). The object of such disputes can be, but not limited to, disagreement about precise determination of one’s share in business;
  2. External corporate disputes, where the dispute is between representatives of two or more corporations (businesses).

Such disputes arise due to legally unprepared restructuring of the company that may take different shapes and forms:

Reorganization of the company;

Merger and acquisition;

Selling a share in a business project.

Any reorganization procedure implies further expansion and prospective development of the company. However, this is only possible if it was competently prepared and every possibility and related risks have been carefully considered.

In this case the attorney’s role is to carefully calculate the possible risks, conduct checks and analysis to form a comprehensive understanding of the organization’s legal landscape.

Today the most wide-spread reason for corporate disputes is related to organization’s economic activities.

Law firms represent client’s interests in corporate disputes, conduct the mandatory checks, provide qualified one-time consultations, and handle court settlement on the case, including violation of rights of certain shareholders.

How we can help:

An attorney specialized in corporate law will provide assistance on any business-related issues, elaborate the necessary articles of association and other internal documents, analyze the existing documentation, provide legal support in share transactions in pre-trial or court proceedings;

Settle conflicts, analyze the company environment to rule out external threat, make necessary changes to articles of association, and any other actions necessary for efficient operation of a business;

Prevent the risk of raider attack on the business that can take one of the following forms:

– hidden purchase of shares;

– acquisition via hired uncontrolled management;

– illegal objection to the results of enterprise privatization;

– repossession of property by means of administrative or financial pressure;

Counter a raider attack: more frequent checks by various inspection authorities may be a sign of imminent raider attack. In this case attack can be countered by prediction;

Prevent violation of shareholders’ rights: illegal actions with respect to shareholders; violation of rights to receive share of profit and contribute to activities of the business; restricted access to information about company’s activities, and other restrictions on lawful claims of shareholders. This is the most wide-spread category of corporate violations;


Prevent infringement of shareholders’ interests: unprofitable transactions that may result in business insolvency and loss of property. Inadequate development strategy adopted by managers. Exaggerated expenses due to shareholders abusing their rights;

Prevent the risk of losing one’s share in the company: this category includes cases of shares being illegally repossessed based on forged documents, or dispute the sale transaction in court;

Develop a highly functional business management strategy.

How we achieve the desired results:

  1. We continuously liaise with business registration authorities;
  2. Regularly check the state of documents.
  3. Elaborate and correct articles of association of the company with the view of conflict prevention;
  4. Develop action plan for parties to the dispute;
  5. Appeal decisions adopted at general meetings of shareholders, by board of directors, disputes related to preparation and holding of general meetings;
  6. Dispute settlement involving major transactions and affiliated party transactions;
  7. Dispute settlement regarding shareholder expulsion;
  8. Dispute settlement regarding reparation of damage caused to the company by actions (or inactions) of the company’s executives;
  9. Withdrawal disputes: from disputing transactions to countering hostile acquisitions;
  10. Disputes related to state registration of legal entities, and reorganization of the company;
  11. Disputes with registrars and depositories;
  12. Assistance provided to parties of the conflict in pre-trial dispute settlement (mediation).