Director and Shareholder Disputes Services for Employers

Strategic employment law advice to help businesses manage senior-level disputes, negotiate effective exits and protect continuity, value and reputation.

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Disputes involving directors and shareholders can affect leadership, decision-making, workforce confidence and the wider performance of a business. Matters can become particularly complex where an individual is simultaneously a director, shareholder and employee, with separate rights and obligations arising from each role.

DTM Legal advises companies, boards, shareholders and senior management teams on disputes and exits involving directors and shareholder-employees. We help employers manage concerns relating to performance, conduct, conflicts of interest, breakdowns in working relationships and disagreements over an individual’s future involvement in the business.

Our Employment & HR solicitors can advise on the employment process, negotiate settlement terms and help protect confidential information and commercial relationships following an exit. Where the matter also involves company ownership, share transfers, directors’ duties or formal litigation, we work with our Corporate & Commercial and Dispute Resolution teams to provide coordinated support.

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Director and Shareholder Dispute and Exit Legal Services

We provide practical advice and support across a wide range of senior-level disputes and exits, including:

  • Advising on the employment status and contractual rights of directors
  • Reviewing directors’ service agreements and employment contracts
  • Managing performance and conduct concerns involving directors
  • Advising on disciplinary and grievance procedures
  • Supporting internal investigations
  • Advising on suspension and changes to duties
  • Managing breakdowns in relationships at board level
  • Advising on conflicts of interest
  • Negotiating director and shareholder-employee exits
  • Preparing and negotiating settlement agreements
  • Advising on notice periods and garden leave
  • Confidentiality and intellectual property protections
  • Restrictive covenants and post-termination obligations
  • Advising on bonuses, incentives and deferred remuneration
  • Coordinating the termination of employment and removal from office
  • Advising on communications with employees, customers and stakeholders
  • Supporting changes to board and management responsibilities
  • Employment advice connected with share buybacks and transfers
  • Mediation and negotiated resolution
  • Defending Employment Tribunal claims arising from senior exits
  • Coordinating advice with corporate and dispute resolution specialists

Why Instruct DTM Legal?

A dispute involving a director or shareholder-employee will often extend beyond an ordinary employment issue. Our Employment & HR team considers the individual’s employment contract, office as a director, shareholding and influence within the business before helping you identify the most appropriate strategy.

We provide practical and commercially focused advice designed to protect business continuity and avoid unnecessary escalation. This may involve addressing concerns through an internal procedure, negotiating changes to responsibilities or agreeing a structured exit that resolves the employment and commercial issues together.

Where a dispute involves wider company law, ownership or litigation considerations, we can draw on expertise from across DTM Legal. This coordinated approach helps ensure that decisions about employment, board membership and shareholding are properly aligned and documented.

We provide:

  • Practical advice on complex senior-level employment matters
  • Clear guidance on overlapping director, shareholder and employee roles
  • Strategic support with internal procedures and negotiations
  • Carefully structured settlement and exit arrangements
  • Advice on confidentiality and post-termination protections
  • Coordination with Corporate & Commercial and Dispute Resolution solicitors
  • Representation where an Employment Tribunal claim arises

Get in Touch

Whether you are managing a dispute involving a director, negotiating a shareholder-employee exit or considering changes to your senior leadership team, our Employment & HR solicitors can help you develop a clear and commercially effective strategy.

To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.

Key Contact
Partner / Head of Employment & HR
DTM Legal
5/5
350+Reviews

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Let’s Discuss Your Case

Reviewing the individual’s different roles and the desired commercial outcome at an early stage can help the business avoid conflicting decisions and procedural errors. Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.

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DTM Legal
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Employment & HR Team

tom evans team members img 01
Tom Evans

Partner / Head of Employment & HR
Louise Harcombe, Associate, Employment (1)
Louise Harcombe

Associate, Employment & HR
Michelle Roby, Chartered Legal Executive Employment & HR
Michelle Roby

Chartered Legal Executive, Employment & HR

Frequently Asked Questions

Commonly asked questions when businesses need support with director and shareholder disputes or exits.

No. A director is an office holder and will not necessarily be an employee simply because they hold a position on the board. They may also have a separate employment contract covering executive or operational responsibilities, in which case employment rights may apply to that distinct relationship.

The service agreement, working arrangements and wider circumstances should therefore be reviewed before decisions are made about dismissal, notice or contractual payments.

Not necessarily. Removal from the board and termination of employment are separate legal steps, even where they are intended to take effect at the same time.

The company should review the articles of association, shareholders’ agreement and service agreement and follow the appropriate corporate and employment procedures. Removing a director commonly requires shareholder approval, while Companies House must also be notified of the termination of the appointment.

Ending employment does not automatically transfer or cancel an individual’s shares. The position will depend on the articles of association, shareholders’ agreement and any provisions dealing with employee or director shareholders who leave the business.

These documents may include compulsory-transfer provisions, valuation mechanisms or different treatment for “good leavers” and “bad leavers”. The employment and shareholding arrangements should be considered together before an exit is finalised.

Yes. A settlement agreement can resolve employment claims and document matters such as termination payments, notice, confidentiality, restrictive covenants and agreed communications.

However, a standard employment settlement agreement will not always deal adequately with shares, resignation from office or wider company rights. Additional corporate documents may therefore be required to complete the overall exit.

The employer should review the individual’s access to confidential information, customers, employees and business systems. It should also consider notice, garden leave, restrictive covenants, the return of property and how responsibilities will be transferred.

Existing contractual protections should be assessed before action is taken. Where there is an immediate risk to confidential information, important relationships or company assets, urgent legal advice may be required.

What our Clients Say

See what our customers have to say about their experience

Review Solicitors Stars
5/5 350+Reviews
Steve Tatham
26/04/2026
Tom Evans provided an excellent service regarding my recent Voluntary Redundancy. Tom was friendly, knowledgeable and helpful in supporting the processing of the legal documentation around redundancy. Tom was very timely and managed our sessions well to ensure we didn’t overrun. I would highly recommend Tom and use him again if I needed legal support.
Ellie
27/10/2025
DTM’s employment department has dealt with a couple of matters on our behalf. They have dealt with all matters efficiently, providing clear advice on employment law, whilst also understanding the commercial aspects of suggested actions.
Mia
15/10/2023
They feel like an extension to our business. They fully understand our business inside and out and are very responsive and provide a huge level of support.

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