By Mark Harley | Principal â Boss Lawyers
Director and shareholder disputes can escalate quickly and when they do, they can destroy years of hard work, goodwill, and corporate value.
At Boss Lawyers, we regularly act for founders, directors, and minority shareholders caught in conflict over control, money, and trust. In most cases, the damage doesnât come from the dispute itself it comes from waiting too long to act.
1ïžâŁ The warning signs are always there
Every serious director dispute begins with subtle red flags:
- financial decisions made without board approval;
- exclusion from management or key information;
- misuse of company funds or assets;
- personal expenses pushed through the business; or
- âshadow entitiesâ being set up to divert work or clients.
If these sound familiar, youâre already in the danger zone. The longer you leave it, the more difficult it becomes to preserve evidence and protect your equity.
2ïžâŁ Act early â not emotionally
When relationships sour, instinct says âwait it outâ or âsee how it plays.â Thatâs the worst strategy.
Early intervention allows you to:
- Secure access to company records under the Corporations Act;
- Preserve evidence before itâs deleted or âlostâ;
- Clarify your legal position whether oppression, breach of duty, or misuse of assets; and
- Control the narrative with other directors, investors, and advisers.
Once lawyers are involved, the tone changes but the right approach can resolve things commercially before court action becomes inevitable.
3ïžâŁ Donât rely on trust â rely on documents
In every dispute, documents tell the story. Board minutes, bank records, emails, text messages they reveal who knew what, and when.
We often see directors who trusted handshake arrangements, only to later discover âinformalâ agreements are worthless when moneyâs at stake. Get legal advice before signing, transferring, or resigning. Once youâre out, your leverage is gone.
4ïžâŁ Litigation is the last resort â but preparation wins it
Most disputes settle once the other side realises youâre organised, advised, and serious.
Having a clear brief, factual timeline, documents indexed, and evidence preserved gives you leverage long before filing proceedings.
At Boss Lawyers, we structure every dispute for early resolution but prepare from day one as if it will go to court. Thatâs why our clients are rarely the ones caught off-guard.
âïž Need advice? Talk to us early.
Whether youâre being excluded from management, suspect financial misconduct, or simply want to understand your options, we can help you protect your position.
