Disputes between directors, shareholders, and business partners are increasingly common. Learn how early legal advice and mediation can resolve commercial conflict and protect your interests.
Director and Partnership Disputes: Why Early Intervention and Mediation Matter
Running a business with others requires trust, shared vision, and clear governance. But even the strongest relationships can break down especially when the pressure is on.
At Boss Lawyers, we regularly advise clients in director disputes and partnership breakdowns, often involving serious allegations: misuse of funds, conflict of interest, deadlock in decision-making, or breach of statutory duties.
These disputes can be devastating not just financially, but personally. That’s why early legal advice and a strategic resolution plan are critical.
Common Causes of Director and Partnership Disputes
Disputes often arise due to:
- Breakdown of trust between founders, directors, or partners
- Mismanagement or failure to disclose financial dealings
- Allegations of breach of directors’ duties under the Corporations Act 2001 (Cth)
- Unequal contributions or disagreements over profit distribution
- Share dilution, exclusion from management, or oppressive conduct
- Lack of clarity in shareholders’ agreements or partnership deeds
These issues are often compounded by poor communication and the absence of a clear dispute resolution process in the founding documents.
The Legal Risks Are Real
For company directors, disputes can quickly escalate into claims for:
- Breach of duties (ss 180–184 of the Corporations Act)
- Oppression under s 232
- Misuse of position or information
- Personal liability for insolvent trading (s 588G)
In partnerships, disputes often involve:
- Breaches of fiduciary duties
- Equitable claims for account and contribution
- Dissolution and asset division
Left unresolved, these disputes can destroy a business and expose individuals to personal risk.
Why Mediation Is Now the Preferred Path
Litigation is expensive, slow, and often irreversible. That’s why mediation is increasingly used in director and partnership disputes even in complex, high-value matters.
Benefits of mediation include:
- Confidentiality – protect your reputation and business
- Control – parties shape the solution, not the court
- Speed and cost-effectiveness – faster than litigation
- Preserving relationships – ideal where future collaboration is possible
We often act for clients in mediation proceedings before the matter escalates to court. Where necessary, we also pursue urgent interim relief (such as injunctions or orders to access company records) to protect your position before mediation.
Our Expertise
At Boss Lawyers, we’ve acted in director and partnership disputes involving:
- Closely held companies and professional practices
- Trusts and unit-holder disputes
- Multi-party conflicts involving shareholders, directors, and related entities
- Pre-litigation mediation and strategic settlements
- Urgent court applications in the Federal Court and Supreme Court
Our approach is commercial, strategic, and tailored to the situation. Whether you’re trying to resolve a deadlock or exit the business cleanly, we help you protect your position and move forward.
Need Advice?
If you’re involved in a director or partnership dispute, don’t delay. The earlier you act, the more options you’ll have.
📞 Contact Boss Lawyers today for a confidential consultation.
📍Based in Brisbane, acting for clients across Australia.
