A Guide to Dealing with Corporate Law Disputes
As the name suggests, this section of our site is a guide to the law involving your business and how it is administered (דיני חברות). The aim is to provide guidance as to what you need to know in order to keep your business on the right track and to ensure that it is a success.
The best way to find out the ins and outs of the law is to get some free advice from a professional who can tell you whether your business is exposed to the risks posed by the legal system and how you can make the most of it.
One of the most common problems faced by many companies is dealing with a disgruntled shareholder who has a complaint to make. Depending on the nature of the complaint, the company could be subject to a range of remedies from an outright winding up petition, to a series of legal proceedings that aim to resolve the issue in a fair and expedient manner.
Disputes over mergers and acquisitions, stock transfers, dividend payments and other forms of company governance can all become highly contentious in the eyes of the company’s shareholders and directors.
The most important thing to remember when dealing with a disgruntled stakeholder is to be able to put a positive spin on the situation in a dignified and constructive manner.
A Guide to Dealing with Corporate Law Disputes
Whether you are an employee or a director, chances are you will be involved in corporate disputes at some point in your career. These can be incredibly frustrating, especially when you are working to keep your company moving forward. Often, there will be no obvious cause for the conflict, but you must take steps to resolve it quickly and efficiently to avoid a worse problem.
Legal disputes between corporations typically come from a variety of sources. A corporation can file a suit against another for a number of reasons, including securities litigation (investors or debt holders), breach of contract, antitrust litigation (lawsuits that allege companies are engaging in business practices that violate competition laws), regulatory disputes (financial regulators or state agencies filing lawsuits against companies accused of breaking rules), and consumer class action suits (groups of consumers filing lawsuits against corporations).
Litigation is a complex field to navigate and should be approached with the utmost caution. It can be a drain on both the time and resources of any company that gets involved in a legal dispute, and is always best avoided where possible.
For situations where a lawsuit may be too costly or too time-consuming, you can seek alternative forms of dispute resolution such as mediation and arbitration. These methods are often less expensive and can help you to resolve the issue quicker, with less damage to your business. The best way to find out what methods are available is to consult with your legal counsel.