What is Mediation?
Mediation is a process where a company or individuals invite a third party to review an internal dispute between directors. The mediation process involves an independent mediator who is a neutral third party to assists the parties involved to reach a resolution that is mutually satisfactory. When a company or group have a dispute, it can create a major roadblock for the venture. Using an independent mediator is an is an effective alternative to costly court proceedings because the issues are explored in an open and unbiased way by the mediator with the aim of coming to an amicable agreement between the parties involved that is in the best interest of the company or venture.
Mediation offers unbiased solutions and reopens the lines of communication to address issues that may threaten a business moving forward in a positive way. Court proceedings can not only be costly but the delays associated with the same hamper and damage the strength of a business.
Director’s Dispute – How to Exit the Business
Disputes between company directors can lead to owners/shareholders wishing to exit the business.
Closing the Business When disputes result in a deadlock that holds back progress, winding-up a company is the sometimes the best option. The shareholders are now met with the challenge of how to best liquidate a business in an equitable way before closing the company and seeking to be voluntarily struck off the register.
Buying out Member’s Shares In other cases, the best resolution may be for one or more directors/shareholders to leave the business, so the remaining members can continue moving forward. The main challenge here is how to properly assign a value to the shares and buy out the members that wish to exit the business.
It is important to seek a resolution through the mediation process because the typical next step would be to go to arbitration. This is a legal process used to resolve disputes outside of the courts. However, when the parties enter into arbitration they are bound to the final decision which is made by the arbitrator(s).
Company Bureau can provide a specialist strategic partner who has years of experience in professional mediation. The mediator can review the issues facing the shareholders or members of a company and facilitate clear open communication towards an agreed solution for the parties. Should you require mediation services or wish to know more information, feel free to call us on 01-6461625 or email firstname.lastname@example.org.Contact us now for further details