Shareholder disputes are the major reason for any business to come at bankruptcy because if the owners are not settling their disputes between them then how they are going to run a business together. When a company suffers from shareholder dispute, it not only faces operation problems but financial problems as well. Shareholder dispute means when the two shareholders are not agreeing upon the same thing and this negatively affects the business’ day to day operations which eventually results in financial loss. If the shareholder dispute has not been resolved, then there are high chances of the business to bankrupt because it will negatively affect your reputation in the market which can also lead to a financial loss. In order to keep the business running and profitable, shareholders should try their best to avoid arguments and disagreements because this is the major reason for such an issue. Let us discuss some of the common causes of shareholder disputes.
Conflicts of interest
One of the most common causes of shareholder disputes is the conflict of interest which means that the shareholders are having different aims and purpose for the business and they disagree with each other. If there is a conflict of interest, then this will have a direct effect on decision making and no one would be able to make any decision if there is a conflict of interest.
Lack of interest
If some shareholder believes that some of the shareholders of the company are not taking any interest in the business as much as they should do or as much as other shareholders are taking, then a shareholder dispute takes place. To avoid it, all shareholders should take an equal interest in the company because it is the responsibility of every shareholder to work and take interest equally in the business.
Irresponsibility in performing duties
When some shareholders feel that other shareholders of the company are not fulfilling their tasks or not perform their duties on a timely basis and in an efficient manner, then this gives rise to a shareholder dispute since every shareholder is responsible for business and performing their duties regularly. Any irresponsibility shown can give rise to a shareholder dispute.
When a company’s finances are not being kept up to date by some shareholders, then it also gives rise to a shareholder dispute because the report of the company’s finances should be given to every shareholder.
If your company is facing shareholder dispute, then you need to contact Quantum Forensic which is a consulting firm helping their clients to solve shareholder disputes and many more which you can know by visiting our website. So what are you waiting for? Get in touch with us and save your business from reaching to bankruptcy.