All You Need to Know about Resolving Shareholder Disputes
by Clement Advisory Limited Forensic Accounting Expert WitnessHaving a business is a dream of everyone but having it is not that
easy. There is a huge difference between running a business and doing a job. A
job can be done independently but running a business is just impossible without
depending on someone. A business is basically a group of people who run it with
the help of each other. Usually, a business involves officers, director and
shareholders.
Usually, shareholders do not work at the front end but they play an
important role in every business. Remember, shareholders are the final decision-makers
of every business. Shareholders also approved the resolutions of the directors.
Usually, every business’s ownership depends on the owner or business partner. But,
the ownership is decided by the one who has the major investment in the
business.
Having shareholder in the business is beneficial but usually,
disputes happen in between the shareholders. Unlike other disputes, these
disputes are never represented to the court. In fact, shareholder disputes are resolved
by the arbitrator. The arbitrators carry out the process, known as arbitration.
In the resolutions, the law varies according to the location.
Suppose, if the shareholder belongs to Hong Kong, shareholder
dispute resolution will be held in Hong Kong only and the same area’s
law will be applied. On the other hand, if the shareholder belongs to Ontario,
Canada, the same country's law will be applied.
No matter where the arbitration is held, but it is only possible
with the help of an arbitrator. It also depends upon the shareholder, whether
they want to go for arbitration or they want to directly go for the courtroom
proceedings. An arbitrator can do his best for the dispute resolution but the
end decision remains with the shareholder. If they are not satisfied with the decision
of the arbitrator, they can knock the door of the court. An arbitrator can
never impose their decision on the shareholders. A shareholder has all the
rights to challenge the decision of the arbitrator.
In the Nutshell, it is good to go as soon as the dispute occurs.
Never make any sort of hurry to find any arbitrator. A good arbitrator can
resolve the issues within fewer days and a bad arbitrator can complicate the
things. So, do proper research to find out the right arbitrator. Also, try to
find out the best arbitrator in the nearest geographical boundaries.
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Created on Jan 21st 2020 01:53. Viewed 428 times.