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05 — COMMERCIAL LAW & BUSINESS SUPPORT

Corporate disputes: resolving shareholder conflicts without destroying the business

Shareholder disputes are among the most complex situations in commercial law: they combine legal, financial, operational and often family dimensions. A poorly handled resolution can destroy the value of a thriving business — even more so when it drags on through cross-claims, injunctions and operational blockages. A well-managed resolution, on the other hand, can turn the conflict into an opportunity for restructuring or an orderly exit.

We advise shareholders and companies across the full spectrum of corporate disputes. When viable, we mediate and negotiate. When necessary, we litigate firmly. The objective is always to protect the client's rights and, where possible, preserve the value of the business.

Types of corporate disputes

Challenging shareholder resolutions (arts. 251 et seq. Companies Act — LSC)

Meetings called with procedural defects, resolutions passed without sufficient quorum, abuse of majority, resolutions affecting minority shareholders' rights. Deadline for challenge: 3 months from the meeting (art. 251 LSC).

Partner exclusion (arts. 91 et seq. LSC)

Available when a partner seriously breaches their obligations, engages in willful misconduct, or their conduct causes harm to the company. This is an extreme remedy and requires rigorous grounds.

Liability action against directors and managers

When directors or managers act with fraud, gross negligence or in violation of the company bylaws, shareholders may claim damages (arts. 274 to 279 LSC).

Dissolution and liquidation

When the company is no longer viable or the rift between shareholders is final, dissolution (art. 94 LSC) and orderly liquidation of assets are the appropriate remedy.

Management disputes

Challenged management decisions, contracts executed without authorization, conflict-of-interest transactions, excessive withdrawals by managers/directors. Each case requires specific analysis.

Dividend disputes

Majority blocking profit distributions despite available earnings, covert distributions to certain shareholders, indirect undercapitalization of the company.

Disputes over transfer of shares

Application of statutory pre-emption rights under the company bylaws, valuation of shares or quotas, exercise of exit rights (drag-along, tag-along).

Procedural tools we use

Injunctions and interim measures

Suspension of shareholder resolutions, judicial intervention in management, status quo orders, preventive attachments. Interim measures in corporate disputes can determine the entire course of the case.

Judicial intervention in management (arts. 113 et seq. LSC)

Appointment of an observer, co-manager or judicial administrator when there is risk of serious harm. An exceptional tool but extremely effective when the legal requirements are met.

Action for simulation or fraud

When corporate structures were used to defraud creditors or shareholders, the action to pierce the corporate veil and challenge the tainted acts is available.

Negotiation and mediation

Corporate litigation is typically destructive of business value. That is why, before filing suit, we always explore the negotiated path: mediation between shareholders, independent valuation, orderly exit mechanisms (purchase and sale of shares, spin-offs, mergers), interim management agreements. An intelligent negotiated solution preserves value for all parties involved.

Why choose Tchestnykh & Asociados

  • Integrated strategy: legal + financial + valuation
  • Handling of injunctions and judicial management intervention
  • Mediation and negotiation when it is the most efficient path
  • Defence of both majority and minority shareholders with differentiated expertise
  • Company formation
  • Commercial contracts
  • Comprehensive business counsel