Achieving an Effective Corporate Divorce
Dan Johnson of Equitable Life provides some sage advice on Corporate Divorces and how, for example, minority shareholders can reach agreement with majority shareholders on an amicable split.
…While closely related (in practice), the particular legal specialisms to deal with these different ‘hats’ that the exiting quasi-partner ‘wears’ – can be difficult to find in a single adviser.
A careful understanding needs to be obtained as to the basis upon which an exiting quasi-partner has been involved with (i.e. provided their services and / or been remunerated by) the company…
Those with majority control of a company subject to a corporate divorce will need to resolve any offices with the company (e.g. Directorship etc.) which the relevant exiting quasi-partner holds….
Often the quasi-partner’s shareholding is the most difficult aspect of matters to be resolved, and it may (in practice) not be possible to do so.
This is because the Companies’ Act Model Articles (often adopted as, or forming the basis of the constitution of many limited companies) don’t contain… read the full article.