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The Result

As with most disputes, misunderstandings by either party, of the facts, intentions or the law ,often fuel their continuation. A business mediator will firstly try to identify such and ensure all parties no longer have any misunderstandings.  It may be that it is the case that one shareholder misunderstands why something was said or done and has lost trust, but not explained such to the other shareholder(s).  It may be that a majority shareholder is making decisions unware that, because they benefit him personally but damage  those of the minority shareholders, whilst not, at the same time bringing any benefit to the company, that, in so doing, he is risking a minority shareholder action being taken against him. Directors may not be aware that their actions, such as paying significant sums to a supplier company he owns separate from the minority shareholders,under invoices based on rates for the supplies much in excess of available competing suppliers, may be a breach of their duties under the Companies House 2006 to not take steps prejudicial to the company. The longer such breaches of the law continue the greater may become the damages which other shareholders may be able to subsequently claim in the absence of any negotiated settlement. 

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