Shareholder Rights Solicitors in London, Birmingham and Northampton

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Established in 2014, Witan Solicitors is a trusted legal representative for business clients across the UK and internationally.

In addition to their statutory rights, shareholders possess several rights as described in the Articles of Association, as well as any existing shareholders agreements and contractual agreements. Our corporate lawyers can support you with drafting the necessary documentation to enhance and define those rights, as well as take action to enforce them if needed.

We can also offer legal support to shareholders who believe that they have been treated with unfair prejudice by the company or its directors and wish to make an unfair prejudice claim. Furthermore, we work with shareholders who are considering taking derivative action against directors on behalf of the company.

To discuss your shareholder rights query, talk to our solicitors in London, Birmingham and Northampton at info@witansolicitors.co.uk to get your free initial consultation booked and find out how we can help.

Shareholder Rights Types 

As mentioned above, the rights of the shareholders in a company are outlined first in the Articles of Association and additionally – in the shareholders’ agreement, if one is signed. Based on the percentage owned, in addition to their basic rights, shareholders have minority (owns less than 50% of the company) or majority (owns 50% or more of the company) shareholder rights. 

The rights of minority shareholders have very limited protection in the standard articles of association. Our solicitors can advise you on how to enhance and protect these rights with shareholders’ agreements and/or changes to the Articles of Association.

Majority Shareholder Rights

• 50% or more – Pass ordinary resolutions (appointment and removal of directors, allotment of shares, etc)
• 75% or more – Pass special resolutions (changes to the Articles of Association, changing the company’s name, etc)
• 90% or more – Approve general meetings on short notice 
• 100% – Has full control of the company

Our Services

Our commercial law solicitors regularly advise shareholders and companies on a wide range of topics regarding shareholder rights, including how to amend and enforce those rights, as well as handling claims pertaining to the breach of shareholder rights.

Articles of Association & Shareholders’ Agreements

We can help you strengthen and protect your shareholder rights by drafting or reviewing your Articles of Association and your shareholders’ agreements. These documents should define the exact shareholder rights attached to each share class, therefore, we can assist you with the:

• Allotting shares
• Defining new share classes
• Amending existing share classes
• Adding provisions to annul the statutory right to pre-empt new shares
• Change the value of shares
• Address the right of sale and transfer of shares
• Unfair Prejudice Claims

As commercial dispute resolution experts, our solicitors in London, Birmingham and Northampton can advise you on cases pertaining to unfair prejudice claims. If you are a minority shareholder wishing to make a claim, we will review the details of your case to tell you whether you have a claim or not and what your chances of success are. If you are a company facing an unfair prejudice claim, we can work with you to find a satisfactory resolution in as little time as possible.

We will attempt to resolve shareholder rights disputes via negotiation, mediation and other alternative dispute resolution (ADR) methods first. Reaching a settlement agreement outside of court allows both sides to close the dispute with a positive outcome without having to go through expensive and lengthy litigation. Where litigation is unavoidable, our corporate law solicitors will fight to win your case and protect your interests in Court.

Derivative Action

Shareholders have the right to take legal action against a director on behalf of the company if the actions of the director are in breach of their duties. If you think that you have grounds to make a derivative claim, our team can review your case and advise you whether you have a claim and what to do next.

Demergers

When shareholders disagree and they can no longer find a common way to lead their business, a demerger may be the best solution as it would allow everyone to keep ownership while taking separate paths. Our shareholder rights experts can guide you through a demerger and create a tailored strategy for the reconstruction of your business to ensure its future prosperity.

Why Choose Witan Solicitors?

• 100+ Years of Combined Experience: In our combined experience of over a century, we have built unparalleled expertise in corporate law
• Established in 2014: Having worked with corporate clients since 2014, we are a trusted adviser on all matters relating to shareholder rights
• Legal 500 Recognised: Our Solicitors have been recognised in the Legal 500
• Industry Experts: You can trust our team to provide accurate advice and creative solutions when needed as we never stop learning and improving our knowledge
• Multilingual Support: For our international clients, we offer a tailored legal service in more than 10 different languages
• Corporate law experts near you: Our shareholder rights lawyers can be found in three major locations – London, Birmingham and Northampton

Call us to schedule your free, initial consultation and speak to one of our shareholder rights experts. You are under no obligation to work with us if you are not happy with your initial meeting with the team, so get in touch today to see how we can help.

FAQ

What is the process of calling a general meeting by the shareholders?

General meetings can be called by shareholders who own a minimum of 5% of the business if they have obtained the approval of the directors. If the directors decline the request, the shareholders can exercise their right to call a general meeting regardless.

What are the different voting rights of shareholders?

When a company is planning to engage in significant transactions or decisions about the organisation of the company have to be made, the shareholders are usually required to vote whether they give their approval or not.

To pass, some decisions require a simple majority (more than half of the votes of the shareholders present) and some exceptionally important decisions – supermajority (a certain percentage of the votes of all shareholders which is usually a lot higher than 50%).

The exact voting rights of the shareholders can be found in the Articles of Association.

Can shareholders hold directors accountable?

Shareholders generally hold directors accountable for breaches of duty through the company itself, allowing the board or a liquidator to initiate proceedings. However, under specific circumstances and subject to certain hurdles, individual shareholders or a group of shareholders can bring a claim against a director for breach of duty through a derivative action. In such cases, shareholders act on behalf of the company to address instances of wrongdoing by directors.

Can shareholders bring a claim against the company?

Yes, shareholders can bring unfair prejudice claims against the company if they believe that the company’s management or conduct has been prejudicial towards them. If an unfair prejudice claim is successful, the Court may order injunctive relief or a buyout amongst other remedies.

Can shareholders bring a claim on behalf of the company?

Yes, claims raised by shareholders against directors on behalf of the companies are called derivative claims. Derivative action can be taken if there’s been a breach of duty by the director and if the Court has approved it. If the derivative claim fails, the shareholder can apply for a wind-up petition which, if successful, will have the company close down.