Company Disputes - Deadlock

Sometimes a company cannot function normally because of the behaviour and actions taken by one or more directors. For instance if attempts are made to hold meetings, and the meetings end up being inquorate because a director fails to attend then a deadlock may arise. 

One option to deal with a deadlock, where there is a lack of directors or refusal for a director to attend board meetings, is to seek orders from the court for a meeting to be held. Such an application needs to be supported by an affidavit in support setting out the circumstances and why it is impracticable to try and hold a meeting. 

It would also be possible to take more drastic measures in appropriate cases where a company is in deadlock such as exploring the winding up of it. 

* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.