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Resolve Shareholder Disputes in Poland

Resolve Shareholder Disputes in Poland

Shareholder disputes can be caused by a multitude of scenarios and circumstances. They can include a breach of the existing fiduciary duties, a prejudice brought upon the minority shareholders, shareholders’ agreement breaches or a conflict of interest. 

In order to resolve shareholder disputes in Poland, the parties will need to request legal aid or the services of an arbitrator or mediator. The experts at our law firm in Poland have considerable experience in handling shareholder disputes and can advise you on the most suitable manner of handling these types of cases.

Solving shareholder disputes through litigation

Shareholders in Poland are entitled to a series of rights, according to the types of shares they own and the type of company they invested in. In general, they have corporate rights and property rights.

Shareholder disputes in Poland arise from a breach of duty, if they no longer share the same vision for the evolution of the company or if their rights are not granted. 

When an amicable solution cannot be reached between the shareholders, the dispute can be solved through litigation. It is advisable to choose to work with an attorney in Poland who has experience in managing shareholder disagreements. The legal approach will often differ according to the number of shareholders in the company: when there are fewer shareholders, a legal action may be commenced by one shareholder against another or a group of them. In larger companies, shareholders may file a lawsuit through a derivative action, meaning that a shareholder is suing on behalf of the company to enforce the corporate rights.

One of our attorneys in Poland can also give you more information on shareholder liability and how these disputes can be settled. 

Solving shareholder disputes through arbitration and mediation

Disputes between shareholders in Poland can be handled through arbitration, which is often a preferred method because of the lower costs compared to litigation and a faster processing time for the dispute. The case is taken to an arbitration court, for example, the Arbitration Court at the Polish Chamber of Commerce, and the judgment has the same effect as that issued by a Polish Court. In Poland, the law governing arbitration is the Code of Civil Procedure.

Mediation is another alternative dispute resolution method; however, in this case, a neutral third party (the mediator) assists the parties in solving the conflict. 

An important step for preventing shareholder disputes is drafting agreements and partnership agreements that will reduce the potential for conflict or will establish a basis for negotiation. A specific arbitration clause can be included in all contracts between shareholders and, in general, in any agreement signed by the company. 

Contact our Polish law firm for more information on how we can assist you in shareholder disputes.