What are the most common causes of disputes between shareholders?

 

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1. What are the most common causes of disputes between shareholders?

Common causes of disputes include disagreements over:

  • The company's strategy.
  • The level of dividends.
  • Salaries paid to shareholders who also work for the business.
  • Dealings between the company and a private business owned by one of the shareholders.
  • The price to be paid when a shareholder is bought out.
The problems can be particularly acute where one shareholder, or group of shareholders acting together, can override the wishes of a minority shareholder.