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Shareholder, board dispute resolutions should be in the boardroom, not the courtroom

Battles for companies' boards that have ended up in court indicate there has been a serious breakdown between the board and shareholders, says the writer. ST PHOTO: LIM YAOHUI
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SINGAPORE – Over the past few years, there have been several disputes between minority shareholders of mainly smaller companies and the boards of directors of those companies.

Most of these revolved around dissatisfaction with the direction being taken by the incumbent directors in guiding the companies concerned, leading to attempts by the unhappy shareholders to have the board replaced, sometimes through the courts. As many have found, this can be an expensive exercise in futility.

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