Client Industry:
Entertainment
Background
RLK acted for shareholders in an entertainment company where the Articles of Association stated that all shareholders were entitled to be Directors. Despite this, only one was formally registered at Companies House, giving him total control. He excluded the others from key decisions and used his position to conceal financial wrongdoing.
Challenges
The sole Director was obstructive and unwilling to relinquish control. He employed intimidation tactics against other shareholders and their families, while also using cash-only practices to embezzle funds and hide income. This created a hostile and unsafe environment for those seeking to enforce their rights.
Our Approach
RLK advanced the case on the basis that the company’s Articles of Association clearly entitled all shareholders to act as Directors. We challenged the Director’s misuse of power, exposed financial misconduct, and ensured that our clients had the necessary legal and personal protection throughout the process.
Key actions included:
- Securing evidence of financial irregularities linked to cash-only trading.
- Protecting clients from threats while litigation progressed.
- Taking swift action through the courts to seek an injunction rather than prolonged litigation.
Outcome
An injunction was granted, compelling the registration of the rightful shareholders as Directors. This shifted control back into the hands of our clients and opened the door to recovery of misappropriated funds. The business could then operate with transparency and integrity.
The Value of Our Approach
This case highlights the importance of acting quickly and strategically when shareholder rights are ignored. RLK’s decisive intervention restored balance within the company, safeguarded clients against intimidation, and protected the long-term future of the business.
Client Feedback
“Your service and assistance have been outstanding throughout the process, and I would not hesitate to personally recommend you to others.”
How We Can Help
If you are facing a shareholder dispute, financial misconduct or abuse of power within a company, RLK can act quickly to protect your rights and restore control.
Contact us on 0121 450 7800 or enquiries@rlksolicitors.com.
This article does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to provide information on issues that may be of interest. Specialist legal advice should always be sought in any particular case.