Disputes between shareholders are one of the most serious risks that can threaten business continuity, even for fundamentally healthy companies.
Common Causes of Shareholder Disputes
- Differences in vision for business development
- Disagreement over dividend distribution
- Alleged breach of fiduciary duty by management
- Disputes in divestiture or acquisition processes
- Violation of shareholder agreement
Resolution Mechanisms
The first and best choice is direct negotiation between parties. If that fails, mediation with a neutral mediator can be a more efficient alternative before bringing the case to court or arbitration. AMR has experienced mediators on its advisory team certified by the Indonesian Institute for Conflict Transformation.
Importance of a Comprehensive Shareholders Agreement
Prevention is always better than resolution. A comprehensive and well-drafted shareholders agreement is the best investment to avoid disputes in the future. Our team can assist in drafting agreements that protect all parties.