Shareholder Rights and Dispute Management

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A harmonious and clearly defined relationship between a company and its shareholders is fundamental to corporate stability and long-term success. The balance of power, rights, and obligations between management and owners, if left without a proper legal framework, often leads to internal friction, strategic paralysis, and costly disputes. Our firm provides expert legal counsel dedicated to structuring and managing this critical relationship, ensuring that the rights of all shareholders are protected and that corporate actions are executed in full compliance with the Georgian Law on Entrepreneurs. We help you build a foundation of trust and transparency from the outset, which is essential for sustainable growth and investor confidence.

Proactive management of partner relations begins with a meticulously crafted partnership or shareholder agreement. This document serves as a constitution for the owners, moving beyond the standard company charter to regulate critical matters in detail, such as the terms of share transfers, dividend distribution policies, protocols for capital calls, decision-making procedures, and clear exit strategies. By formalizing these rules of engagement from the beginning, we significantly mitigate the risk of future conflicts and misunderstandings. Should a dispute arise, we provide strategic guidance to navigate disagreements effectively, protecting your interests whether through negotiation, mediation, or litigation.

One of the most crucial aspects of our counsel is the protection of minority shareholder rights. We assist clients in implementing robust mechanisms, both within the company's charter and through shareholder agreements, to safeguard the rights of non-controlling owners. This includes the right to receive complete information, fair treatment during major corporate transactions (like mergers or asset sales), and the prevention of oppressive conduct by the majority. Furthermore, we offer comprehensive legal support for organizing and conducting General Shareholder Meetings, ensuring procedural accuracy and the legal validity of all resolutions passed.

Ultimately, by ensuring that shareholder relations are governed by clear rules and legal expertise, we help foster an environment where capital is secure and management can execute corporate strategy with the full support of its shareholders. This robust legal framework is not just a defensive measure; it is a strategic advantage that makes your company more stable and attractive to both current and future investors and partners.


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