Disputes between directors can bring a business to a standstill. Whether caused by strategic misalignment, allegations of misconduct, or misuse of company resources, a director dispute can threaten a company’s future — and your personal reputation.
At Boss Lawyers, we act for directors in Brisbane, the Gold Coast and across Queensland who need urgent legal advice to resolve director disputes, assert their rights, and protect their financial position.
What Causes a Director Dispute?
Director disputes are especially common in privately held or family-run companies. Causes include:
- Strategic disagreements (e.g. over growth plans or exit strategy)
- Misuse of funds or assets
- Lack of financial transparency (e.g. refusal to share Xero or bank access)
- Breach of fiduciary duties
- Deadlocks in 50/50 boards
- Personal conflicts affecting business decision-making
Director Duties Under Australian Law
Under the Corporations Act 2001 (Cth), directors must:
- Act with care and diligence (s180)
- Act in good faith and in the company’s best interests (s181)
- Avoid conflicts of interest (s182–183)
- Prevent insolvent trading (s588G)
💡 If another director is breaching these duties, or accusing you of doing so, immediate legal advice is essential.
How to Resolve a Dispute Between Directors
There are several options to resolve a boardroom dispute. Your strategy will depend on the conduct involved and the company’s governing documents.
1. Negotiation
Many disputes start with poor communication. A facilitated discussion or lawyer-assisted negotiation may allow parties to move forward.
2. Company Constitution & Shareholders’ Agreement
These documents often include:
- Buy-out rights
- Deadlock resolution clauses
- Dispute mediation procedures
We will review these early to identify your best options.
3. Mediation
A neutral third party can help directors find a practical resolution — such as an agreed exit, share buy-back, or board restructure.
4. Legal Action
Where misconduct, exclusion, or financial mismanagement is involved, legal steps may include:
- Injunctions to stop unauthorised conduct
- Court access to company records
- Oppression claims under s232 of the Corporations Act
- Applications to appoint a receiver or administrator
Should You Resign or Stay?
Resigning can be risky if:
- Company records are missing or manipulated
- You hold unpaid director entitlements
- Your departure affects your shareholding
💬 Always seek legal advice before resigning. We can negotiate your exit, protect your interests, and ensure indemnities are secured.
Why Boss Lawyers?
We have advised directors in disputes involving:
- Misappropriated funds and secret related-party payments
- Illegal share transfers or backdating
- Directors refusing access to records or freezing co-directors out
- Alleged breaches of director duties and fiduciary obligations
Speak to a Director Dispute Lawyer Today
If you are in conflict with another director, don’t wait. Early advice from a director dispute lawyer can prevent financial harm, reputational fallout, or litigation.
📞 Call Boss Lawyers on (07) 3188 0200
📧 Or contact us online
Let us help you take control of the situation — and protect your rights as a director.
