Tensions between shareholders are on the rise, driven by the economic climate, financing constraints and increased tax pressure on companies and their executives. In practice, four main exit routes are available: enforcing the shareholders’ agreement, mediation, court proceedings and, as a last resort, dissolution of the company.
The shareholders’ agreement remains the preferred tool for preventing and managing disputes — provided it exists, is precise and has been properly drafted. Exclusion, forced exit and buy-or-sell clauses must clearly define their triggering events, fit with company and employment law, and meet case-law requirements on fair pricing.
Mediation, still underused, offers a confidential framework to restore dialogue and build tailored solutions. When deadlock persists, courts may appoint a temporary administrator, rule on specific points or, ultimately, order the dissolution of the company — a value-destroying outcome that underlines the importance of careful contractual engineering upfront.
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