Small business-disputes between directors and or members

Disputes sometimes occur between the officeholders (such as directors and company secretaries) and/or the owners (shareholders) of small proprietary companies.

The company constitution is an important document that explains the rules about how a company should be managed.

Where disputes remain unresolved, it is important to seek legal advice. If you unsure about where to access legal advice, contact the Law Society in your state or territory.

Obtaining legal advice will help clarify the legal issues and provide options to resolve the dispute, such as mediation, starting private court action or reporting the matter to ASIC if there have been breaches of the Corporations Act.

ASIC will not get involved in private disputes. However, where there have been breaches of the Corporations Act, ASIC may consider taking action if there is an impact on the market and there are benefits to the general public.

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Disputes between officeholders and/or members of small proprietary companies - INFO 162

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Last updated: 04/11/2013 12:00