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When directors clash, your business can’t wait. Boss Lawyers steps in with expert guidance and practical outcomes.
Disputes between directors can disrupt decision-making, affect company operations and threaten long-term business stability. Whether disagreements are over management decisions, financial entitlements or breaches of fiduciary duties, early legal advice is critical.
Boss Lawyers’ dispute resolution lawyers provide strategic legal guidance for company disputes between directors, helping you understand your rights, obligations and options. From reviewing constitutions, shareholders’ agreements and directors’ codes of conduct to negotiating resolutions or taking such proceedings, our lawyers ensure that your interests and the company’s affairs are protected.
We focus on practical, commercially informed outcomes, minimising disruption and preserving mutual confidence between directors and shareholders where possible.
Director disputes in Australia occur when there is conflict between directors regarding the management, control or operations of a company. Common causes include:
Company director disputes can escalate quickly, potentially affecting shareholders, employees and the broader community. An unresolved or ongoing dispute can cause havoc in daily business operations. Having an experienced commercial litigation lawyer can help you navigate these challenges effectively, protecting both your role and your investment.
At Boss Lawyers, we guide directors and shareholders through every stage of a dispute, providing practical, commercially focused solutions. Our approach combines our extensive legal expertise with our clear understanding of business realities, ensuring your interests and the company’s affairs are protected.
Our services include:
When necessary, we represent clients in court action, seeking remedies under the Corporations Act, including injunctions, buy-outs and access to further powers to resolve deadlocks.
Early intervention can help avoid shareholder disputes and safeguard the interests of particular shareholders, protecting both the business and personal investments.
We advise on governance issues such as paying excessive remuneration and ensure that all decisions support the company’s success.
When director disputes arise, the impact can ripple through your business, your relationships and your personal investment. At Boss Lawyers, we focus on delivering solutions that will resolve the immediate conflict and also protect your long-term interests.
With Boss Lawyers, director disputes are managed in a way that balances legal expertise with commercial practicality, giving you the reassurance that your company, your role and your relationships are protected.
Working with us means you can expect:
A family-owned company faced a deadlock between two directors: siblings with equal ownership stakes. One director wanted to expand the business by securing external funding, while the other preferred to maintain control and avoid debt. The disagreement brought day-to-day operations to a standstill and risked long-term financial strain.
Our Approach:
Boss Lawyers facilitated structured mediation sessions, allowing the business partners to voice their concerns and objectives. We advised on a practical, phased strategy:
The Outcome:
The directors agreed on a phased expansion plan, beginning with a smaller-scale internally funded project. This compromise allowed the business to continue operations without harming its financial position or family relationships.
Why This Matters:
This case highlights the importance of early intervention, mediation and expert guidance in resolving shareholder director disputes. By addressing both disputing parties’ concerns and finding a balanced solution, businesses can overcome deadlocks while preserving operational continuity and key relationships.
The founders of a fast-growing start-up disagreed on a critical strategic decision. One director wanted to accept a lucrative acquisition offer and exit, while the other preferred to grow the company independently. The disagreement risked stalling operations, disrupting investor confidence and creating tension among the executive team.
Our Approach:
Boss Lawyers guided the directors through a structured resolution process:
The Outcome:
The directors agreed on a partial sale, allowing one founder to exit while the other retained control and continued growing the business. This solution balanced financial return, operational continuity and the long-term vision of the start-up.
Why This Matters:
This case demonstrates the value of early legal guidance, mediation and structured negotiation in director disputes. With expert support, even high-stakes conflicts in start-ups can be resolved efficiently, protecting business growth and strategic outcomes.
The company constitution and any agreements involving directors often outline how disputes should be managed. Reviewing these documents is a key first step. Many disputes can be resolved internally with structured negotiation or mediation, avoiding costly legal proceedings.
Where internal resolution is not possible, remedies under the Corporations Act may be available, including:
Courts generally encourage early mediation and negotiation to resolve disputes, especially where the company is solvent. However, where relationships irreparably break down, court intervention may be necessary to resolve deadlocks or breaches of duties.
In some cases, it may even be appropriate to discontinue legal proceedings if a negotiated solution can protect the business and reduce costs.
When you are facing director and shareholder disputes, immediate action is essential.
Talk to our director disputes lawyers, and they can advise you about your rights and obligations in dealing with shareholder disputes. Discover the Boss difference and get in touch with us directly today.
RESULTS-DRIVEN STRATEGIES
Leveraging extensive commercial law expertise, we deliver practical and commercially informed outcomes that protect both the business and its directors.
PERSONALISED SERVICE
We work closely with clients to clarify options, facilitate negotiations and build solutions that minimise business disruption.
For painless resolution of disputes
If negotiations fail, legal remedies under the Corporations Act may be pursued, including court orders for buy-outs, management intervention or appointment of receivers.
Whether in a private company or larger corporation, director disputes involve complex legal obligations, fiduciary duties and potential financial consequences. Engaging a skilled director disputes lawyer ensures your rights are protected, negotiations are strategically managed, and outcomes align with your business interests.
Yes, a director can take legal action against another director, but it depends on the circumstances. Directors owe fiduciary duties to the company, including acting in the best interests of the business, avoiding conflicts of interest as well as exercising care and diligence.
If a director breaches these duties, such as misusing company resources, making decisions that unfairly prejudice the company or acting outside their authority, other directors or the company itself may have grounds to pursue legal action.
Taking action can involve:
Because director disputes can have serious financial and operational consequences, it’s essential to seek legal advice early. An experienced litigation lawyer can assess your options, protect your rights, and help resolve the dispute efficiently, whether through negotiation, mediation or court proceedings.
