Shareholder Dissension and Deadlocks

Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or

The early stages of dissension and division amongst shareholders is a particularly concerning event. For as such animosity grows and festers between formerly cooperating partners, it is necessary to either resolve those divisions or find an alternate way to move forward. For if a proactive approach is not initiated early on, the division will only grow wider and become that much more difficult to resolve when the parties do attempt to resolve the situation.

Therefore it is important that the problem be promptly addressed, which begins with getting to the route of the problem such that you might identify the means to resolve it. Nevertheless, this will almost always require a degree of compromise from both sides. Anticipating a unitary concession from the other shareholder is foolhardy, as it will only lead to a worsening of the situation. For the sake of the company and maximizing each stakeholder's interest in the corporation, the parties need to find the means to an agreeable resolution, with everyone making concessions to that objective goal.

The intervention of an experienced lawyer can be particularly critical, given that each of the disputing shareholders are committed to their positions. To overcome this impasse, it tends to be beneficial to have the input of a third party (i.e. the lawyer) to provide an objective perspective in an effort to overcome the particular impasse.

For knowledgeable and experienced legal representation in advancing your prospective or current shareholdings, while protecting your position as a shareholder, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or

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