Facing a director dispute in your company? Boss Lawyers explains your legal rights, dispute resolution strategies, and how to protect your business.
Introduction
Director disputes can paralyse a business. Whether it’s a breakdown in trust, disputes over strategy, or allegations of misconduct, these issues can escalate quickly. At Boss Lawyers, we specialise in resolving director disputes efficiently and strategically — safeguarding your business and your reputation.
What Is a Director Dispute?
A director dispute typically arises when two or more directors of a company fall into disagreement over the company’s management, operations, or strategic direction. These disputes often involve:
- Breach of directors’ duties under the Corporations Act 2001 (Cth)
- Conflict of interest or related-party transactions
- Misuse of company funds or property
- Disagreements over dividends, remuneration, or share transfers
- Allegations of shareholder oppression
Common Causes of Director Disputes
At Boss Lawyers, we’ve handled numerous disputes across Brisbane, Gold Coast, and Queensland. Common triggers include:
- Unequal Workload or Contribution
- Remuneration Disagreements
- Lack of Transparency in Financial Management
- Exit Strategy or Buyout Terms
- Family or Partnership Conflicts in Closely-Held Companies
Legal Options in a Director Dispute
Disputes can be resolved informally — or they may require formal legal action. We assist clients through:
- Mediation & Negotiation: Often required under a Shareholders Agreement or Partnership Deed.
- Statutory Demands & Winding Up Applications: Where directors improperly access funds or stall governance.
- Shareholder Oppression Claims: Under Part 2F.1 of the Corporations Act, where minority shareholders are treated unfairly.
- Derivative Action: Where directors fail to act in the best interests of the company.
- Injunctions & Urgent Relief: To freeze bank accounts or prevent unauthorised transactions.
Why Director Duties Matter
The Corporations Act 2001 (Cth) imposes strict duties on directors, including:
- Duty to act in good faith (s 181)
- Duty to act with care and diligence (s 180)
- Duty not to improperly use position or information (ss 182–183)
Breaches can result in civil penalties, disqualification, or even criminal charges (in limited circumstances).
When Should You Speak to a Lawyer?
If you are:
- Locked out of decision-making;
- Concerned about financial mismanagement;
- Facing threats of removal or dilution of your shareholding;
- Involved in a deadlock between directors;
…it’s time to get legal advice.
Early legal intervention can prevent costly litigation and help negotiate a fair and enforceable exit or resolution.
How Boss Lawyers Can Help
We’ve acted in hundreds of commercial and director disputes. Our team will:
- Review your constitution and shareholders agreement
- Provide a litigation risk assessment
- Engage directly with other parties or their legal counsel
- Prepare court applications where necessary
- Protect your rights as a director, shareholder, or investor
We regularly act for clients in the Supreme Court of Queensland, District Court, and Federal Court, and have deep experience in both private companies and complex corporate groups.
Recent Case Highlight: Resolving a Deadlock in a Brisbane-Based Consultancy Firm
When two directors of a Queensland consultancy firm fell into deadlock over financial management and staff entitlements, Boss Lawyers was engaged to urgently intervene. Our client was being excluded from bank access, denied access to company records, and faced threats of removal. We:
- Issued a formal demand for financial disclosure under s 290 of the Corporations Act;
- Applied pressure through pre-litigation correspondence asserting breaches of fiduciary duties;
- Negotiated a binding exit agreement with an independent business valuation and client allocation protocol.
The matter was resolved within six weeks without court proceedings preserving the value of the business and securing fair compensation for our client’s equity.
👉 Learn more about our approach to shareholder and director disputes
Book a Confidential Consultation Today
Director disputes don’t resolve themselves. Contact our experienced director dispute lawyers in Brisbane today to protect your position and explore your legal options.
📞 (07) 3188 0200
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