Corporate disputes abroad

The confidence between directors and investors is important to the prosperity of business abroad, regardless of the country in which the company is set up. If this cooperation is broken, then a corporate dispute between directors and investors could have a negative impact on the potential income of the company. Our corporate disputes lawyers of Advokat v Europe Ltd. will assist you to find a solution!

For business prosperity abroad, there have to be strong ties between the owners of the business (investors) and those who are responsible for its daily operation. Therefore, the business can be permanently damaged, if this structure will be broken.

A corporate dispute between the investors and directors of the foreign company may arise for a number of reasons:

1. The director does not fulfill his obligations. Everyone who is officially appointed to be the director of a certain company must perform a number of duties as a part of his daily work. The first of these responsibilities requires the director to agree to the company’s bylaws and act in a company’s interest; the director has no right to steal the company’s assets. Other responsibilities of a director include: agree not to benefit from any third party, contribute to the success of the company, and avoid conflicts of interest. If a director violates one or more of these responsibilities, then investors can initiate the legal proceedings in the court. A corporate dispute between directors and investors usually arises if some or all of the investors believe that the director does not obey the internal rules of the company.
2. Violation of corporation by-laws or shareholders’ agreements. Shareholders’ agreement (investment contract) is an agreement between a company and its investors (shareholders), which considers all aspects of the relationship between the parties. The shareholders’ agreement and corporation by-laws form the internal rules of the foreign company. Thus, the violation of shareholders’ agreement or corporation by-laws can quickly create a corporate dispute between directors and investors or between shareholders.
3. Distribution of a company’s earnings. Another potential reason of controversy is a company’s dividend stocks, especially if such dividend stocks are unfairly distributed between the shareholders.
4. Leadership and strategy. Very often the directors have different visions of the development strategy of their company. Likewise, investors may not share many strategic issues with directors. If these disagreements cannot be resolved by conventional means of communication, then it can lead to tension and escalate into a corporate dispute.

Our law firm Advokat v Europe Ltd. has a huge experience in resolving corporate disputes in Europe, the United States, and other offshore zones. Our experts use their extensive knowledge and experience in corporate law in the country of investment in order to resolve the dispute as quickly as possible.