In the management of any business, the balance between cost and risk is critical. We recognise that taking legal advice on employment matters is a cost to our clients’ businesses and it is important to drive that cost down as far as reasonably possible; however, where cost is squeezed, risk can increase. By waiting to
Board Level Disputes & Exits
Board level and senior management disputes present businesses with additional challenges and difficulties, particularly during times of change or business restructure. They can also be particularly problematic in businesses subject to regulatory regimes. Senior-level disputes and exits can disrupt the efficient management of your business and carry with them reputational risk if the matter is acrimonious.
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The best way for businesses to manage such matters will be dependent on the nature of the business, and the factual background. Some senior exits may be entirely amicable, but it will still be critical to ensure measures are in place to protect your business.
For example, we can advise on the possible implications of a senior management exit where there are no post-termination restrictions to prevent employment by a competitor, or where a departing employee holds information proprietary to your business. The departure may result in a change of your ownership structure, or require disclosure to a regulatory body, in which case we are able to seek input from our Corporate/Commercial Team.
Some common issues which arise around board-level disputes and exits are:
- How do we manage director misconduct?
- Can we protect our business from a senior team member working for a competitor?
- What process do we follow if the exit results in a change of our ownership structure?
- How can we ensure our post-termination restrictions are enforceable?
The answers to these questions will very much depend on your business model, industry and structure. Our solicitors can advise on the most appropriate legal and commercial approach to ensure that disputes are resolved amicably where possible, or manage exits of senior employees to minimise litigation risk and reputational damage.