Shareholder disputes
Private dispute resolution can be particularly beneficial for shareholder disputes due to the unique characteristics and stakes involved. Shareholder disputes often involve a variety of stakeholders, including corporate boards, shareholders, and employees.
Private dispute resolution can offer a more efficient and less contentious way to address these complex disputes.
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Overview of services
NZDRC's understanding of the specific procedural and corporate governance requirements of shareholder disputes, combined with its ability to provide flexible and customised dispute resolution processes, makes it a prime choice for handling such disputes.
Process options
With a range of processes available, there will be one to best suit your needs, whatever the nature of your dispute.
FAQ
Explore our FAQ section for quick insights and to find answers to common questions.
Overview of services
Process options
Shareholder disputes can be resolved in different ways depending on the context of the dispute and the objectives of the disputing parties.
Where disputes involve complex issues and multiple stakeholders, however, mediation is often the preferred process.
Mediation
NZDRC’s mediation offering provides parties with a professional, fully administered, and credible mediation process. For parties who are looking to craft a more flexible solution to their dispute, this option empowers parties to develop and explore mutually beneficial settlement options with the assistance of an independent third-party mediator who brings with them significant industry-specific experience.
A model clause for mediation may be found here.
Other popular processes include expert determination, contractual adjudication, and arbitration.
Expert Determination
Expert determination has become a popular method of resolving disputes in several industries involving qualitative or quantitative issues, or issues that are of a specific technical nature or specialised kind, because it is generally quick, inexpensive, informal and confidential.
The principal attraction of expert determination is that it can provide a binding (or non-binding) determination without involving many of the formalities that can beset arbitration and litigation. It also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.
A model clause for expert determination may be found here.
Contractual adjudication
Contractual adjudication is a fair, prompt and cost-efficient way of resolving disputes. If the process was included in the contract, then allowance can be made for a binding and enforceable, but not necessarily final, determination, made within 35 working days.
A model clause for contractual adjudication may be found here.
Arbitration
NZDRC provides both ad hoc arbitration services as well as institutional arbitration under its Arbitration Rules. Both options provide parties with access to arbitration on either a fixed or capped fee basis, providing parties with much-needed certainty in terms of cost.
The NZDRC Arbitration Rules are intended to give parties the widest choice and capacity to adopt fully administered procedures that are fair, prompt and cost-effective, and which provide a proportionate response to the amounts in dispute and the complexity of the issues involved. A summary procedure (early dismissal of claims and defences) is also available under the NZDRC Rules providing parties to financial disputes with access to an early resolution in appropriate cases.
NZDRC’s ad hoc arbitration service provides parties with the flexibility to craft their own process while still giving them access to NZDRC’s institutional oversight, assistance, and support. Importantly, the service also provides certainty in terms of a capped arbitration fee.
When entering into a contract, we recommend that parties adopt one of our model clauses to ensure they can access these services should a dispute arise at a later date. Model clauses for both NZDRC ad hoc arbitration and NZDRC institutional arbitration may be found here.
FAQ
Find quick insights and helpful information on a variety of topics related to shareholder disputes.
What are the common causes of shareholder disputes?
Common causes of shareholder disputes include disagreements over dividend payments, managerial decisions, breaches of shareholder agreements, or disputes over the valuation of shares.
How can private dispute resolution help in resolving shareholder disputes?
Private dispute resolution can help in resolving shareholder disputes by providing a more efficient and less contentious way to address these complex matters. It can offer confidentiality, flexibility, and customisation, which may be crucial in these disputes.
Why should shareholders consider NZDRC for dispute resolution?
Shareholders should consider NZDRC for dispute resolution because of its expertise and experience in dealing with complex and varied cases, its understanding of the specific procedural and corporate governance requirements of shareholder disputes, and its commitment to providing a fair, efficient, and confidential dispute resolution process.
Can NZDRC customise the dispute resolution process based on procedural or corporate governance requirements?
Yes, NZDRC can customise the dispute resolution process to meet specific procedural or corporate governance requirements. This flexibility makes it a prime choice for handling shareholder disputes.
NZDRC: your trusted partner in resolving shareholder disputes
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