Commercial Investment Dispute Solicitors

Take Immediate Action With Our Business Investment Dispute Experts

Commercial investment opportunities can take many forms, from investing in a business on a strictly cash-in, hands-off basis as a third-party investor or ‘silent partner’ to a solid concept in which you’re a shareholder that requires time and additional capital input to take off.

Helix’s specialist commercial litigation team acts in a wide range of investment disputes nationwide.

Investment means different things to different people, and a ‘one size fits all’ approach is ineffective.

For example, you may consider yourself a lender rather than an investor in a company.

Our work in commercial investment disputes typically falls under the following broad categories;

Money loaned to a company or individual;
Partnership or joint ventures;
An SPV company has been incorporated for a specific purpose — typically relating to property development or land;
Investment made to buy shares in a company.

Commercial investments are often successful, but the above situations can be fertile ground for disagreements and legal disputes.

Commercial investments often start with a shared goal but differing contributions of time and money.

However, such agreements can escalate into complex shareholder or director boardroom disputes in which there are competing interests.

A lack of formal legal documents and structure is not uncommon in commercial investment proceedings.

It’s also not unusual for little thought to have been given at the outset about problems that might be encountered along the way — or in an exit.

Sometimes, conduct by shareholders, directors, or other stakeholders can be so poor that it is clearly and objectively unlawful.

Such misconduct can amount to civil fraud — for example, unlawful removal of money from a company account or the non-repayment of a director’s loan.

Key Contacts

Alex Cook

Senior Partner

Recovery of Unpaid Loans

Every business — from startups to long-established companies — needs capital.

When money is required for growth, companies and individuals seek investment or credit.

Company directors and shareholders — or outside individuals and entities — often invest in property or a limited company (or both) through loans.

We often encounter issues arising in the context of property training and investment courses, where individuals with a strong public and social media presence later renege on the repayment of monies they borrowed.

Helix Law has successfully recovered millions of pounds from individuals and companies across the UK and has earned a national following acting in these types of disputes.

Our clients range from high net-worth individuals who are onshore or offshore residents to company lenders.

Helix uses all the tools at our disposal, such as insolvency litigation or claims and Judgments in pursuit of individuals and companies who default on lending terms.

We act for secured and unsecured creditors and are incredibly effective in our work in this area, where speed can be critically important.

We are experienced in successfully obtaining charges over assets, moving unsecured creditors to secured creditors, and successfully forcing the sale of assets such as shares or (preferably) property — all in pursuit of recovering investment loans that have not been repaid.

Lending money to a company or jointly investing in property can come with substantial risks and rewards.

It’s often no exaggeration to say there is a race to assets, and it can be essential to act quickly and clearly to pursue loan recovery.

You may not have full visibility on the position of borrower companies or guarantors. If you are unpaid, it’s highly likely that others are also.

If you’ve lent money to a company or invested in a property and are involved in a dispute, our expert commercial litigation team can help.

We are frequently consulted and take instruction nationwide in all types of commercial litigation and dispute resolution, including:

– Shareholder Disputes

– Property Investment Disputes

– Construction Disputes

Joint Venture (JV) Disputes

Joint ventures can take many forms technically and legally — including a limited company investment where you (or a company) take shares in another company and have a shareholders agreement with multiple shareholders.

Or perhaps a partnership or limited liability partnership is incorporated (LLP.)

Whilst many JVs start and end well, inevitably, there can also be breakdowns in relationships.

Sometimes, people get greedy and act unlawfully.

In other situations, genuine misunderstandings arising from a lack of certainty and formal documents at the outset can fester into a dispute and litigation.

Whatever your joint venture’s situation and background and the issues surrounding the dispute, our experienced team will position you on the front foot and ensure the best possible outcomes when you are in conflict with a partner or fellow shareholder.

We have acted in disputes involving groups of companies with tens of millions in assets.

We are well-placed to assist and advise you on the best and most appropriate steps to take to protect your position in the short term and achieve the best possible outcome.

Ideally, joint ventures should be undertaken and operated under an expertly drafted joint venture agreement (JVA).

However, parties to a joint venture often rely on little more than a handshake agreement, increasing the likelihood of an eventual dispute.

Even where a JVA is in place, disputes frequently happen.

We’re happy to speak with you if you’re uncertain where you stand or are concerned you are invested in a joint venture headed for a dispute or litigation.

The earlier we’re involved, the better the outcome we can achieve for you.

Special Purpose Vehicle (SPV) Shareholder and Loan Disputes

A Special Purpose Vehicle (SPV) is a limited company with a narrow scope that has been incorporated to achieve specific objectives.

SPVs are frequently used to hold shares or ‘an interest’ following the purchase or investment in a complex asset, such as shares in a third-party company.

Property and land investors and developers use SPVs to:

Purchase or hold property and land;
Develop opportunities such as land and planning uplifts;
Build out developments;
Assist in the management of rental properties.

Many commercial lenders won’t loan a property investment company money unless it’s an SPV.

Lenders prefer to isolate and mitigate their financial risk.

An SPV’s trading activities are restricted compared to traditional limited companies.

There can also be numerous tax and other benefits of SPVs for property investors and landlords.

Like traditional limited companies, SPVs can have multiple shareholders and directors.

It’s commonplace for SPV shareholders or directors to finance the company either with a cash loan or by taking a mortgage against other properties they own — often their homes.

Unfortunately, disputes between shareholders and directors in an SPV are just as likely to occur — and as challenging to resolve — as shareholder disputes in a traditional limited company.

If you’re an SPV shareholder or director who helped finance the company with a loan — or you have any other type of SPV dispute — our team understands the commercial world you operate in.

We’re experienced in litigating disputes that arise with SPVs and would love to help you.

Unlawful Director or Shareholder Conduct

Unlawful conduct occurs more frequently than you might ever imagine, especially in small-to-medium-size companies that are owner-operated (with directors and shareholders).

Not only can unlawful conduct by a director or shareholder jeopardise a company’s future, but it can also have devastating consequences for other company members and investors, including impacting the value of shares.

A common misconception is that a majority shareholder can do as they please as they have ultimate voting power and control/rights.

Whilst different levels and percentages of shares can impact the ability to propose and pass resolutions (more info here), a majority cannot do anything that amounts to unfair prejudice against the minority shareholders.

More information and details on unfair prejudice can be found here.

Civil Fraud

In rare situations, a director or fellow shareholder may engage in conduct so poor that it requires urgent investigation and input.

We have acted and have advised on situations where misconduct has taken place, including:

Diverting business opportunities away from the company
Assets like property and land have been purchased, sold or transferred at undervalue
The company is deliberately run into the ground
Monies transferred without agreement

Such misconduct can often have a degree of criminality or potential criminality behind it.

The police may investigate fraudulent conduct.

But when it comes to recovering money or property, this is work we complete and where our specialist team can come into its own.

We have significant experience obtaining injunctions and freezing orders against bank accounts and obtaining orders preventing the sale or disposal of property at the land registry.

If you’re a director, shareholder, or investor who encounters potentially fraudulent behaviour, we’re well-placed to assist you.

Ready to Take the Next Step?

If you or your company have encountered problems with your commercial investment, we’d love to help you.

When it comes to putting you in the best possible position, time is of the essence.

Our team act nationally and have significant experience in all kinds of business investment disputes.

Contact our expert commercial litigation team today — we’ll gladly assist you.

We aim to respond to all queries within an hour.

Other Forms of ADR

Negotiation, mediation, and arbitration are by far the most commonly used methods of ADR, but additional alternatives exist, including:

Adjudication
Expert determination
Early neutral evaluation (ENE)
Conciliation

Alternative Dispute Resolution Benefits

ADR has multiple advantages over litigation in a wide variety of commercial disputes, including:

Faster Resolution

Depending on the parties’ locations and the type of dispute, it can take months or years for a dispute to proceed to a trial in court.

ADR is typically a much quicker way to resolve a commercial dispute.

Lower Legal Costs

ADR can be cheaper than litigating the matter to a trial.

However, it’s essential to consider that if a dispute does go to court, the successful litigant will typically be awarded payment for costs.

Costs are sometimes awarded in arbitration, but it depends on the particulars of the contract or freestanding arbitration agreement.

Less Uncertainty

No matter how strong you believe your position is in a commercial dispute, taking a case to court carries an element of risk and a lack of control.

A single judge usually determines the outcome.

Because arbitral awards are legally binding, uncertainty is also inherent in the arbitration process.

Reaching a settlement through negotiation or mediation guarantees that you will only agree to a solution that you find commercially acceptable.

If your position is exceptionally strong and costs are a concern, it might be worth exploring alternative funding options for litigation.

Our litigation team frequently work on a no-win, no-fee basis in commercial, property or construction litigation disputes.

Privacy

For many businesses — particularly at the enterprise level — keeping the details of commercial disputes from the public is a significant concern.

Court proceedings are public, and the details of a dispute can easily become common knowledge — particularly in high-profile matters.

A business can suffer significant damage to its reputation, even if it wins in court.

ADR proceedings and outcomes are private and are not public documents.

The details of the dispute — and the eventual settlement — can and usually will remain confidential.

Conflict Reduction

Suppose a mutually agreeable settlement is reached through negotiation or mediation. In that case, it’s far more likely that a commercial relationship can be maintained, and the dispute may not preclude working together in future.

What Happens if Alternative Dispute Resolution Doesn’t Work?

Litigation is often the only recourse if ADR fails and no agreement can be reached.

Opposing parties frequently become entrenched in their positions, or the gap is too far to bridge through negotiation or mediation.

Unless arbitration is contractually required, it’s unlikely that the party with the weaker position in a dispute will enter into an arbitration agreement unless confidential matters are involved.

This is particularly true if your opponent’s goal is to delay or withhold payment or other resolution of the dispute, hoping that you will write the matter off.

Even in disputes that can be resolved through negotiation or mediation, the threat of litigation can lead to a more favourable commercial outcome.

If you’re involved in a commercial dispute and find yourself at an impasse, Helix Law’s expert litigation team can help.

ADR is just one tool in our legal armoury.

Knowing when, where and how to deploy ADR — and optimising your legal position — is fundamental to achieving a positive outcome.

Contact Helix Law’s commercial litigation team today, and we will be happy to discuss your options, including ADR, to reach a successful outcome.

We aim to respond to all queries within an hour.

Outstanding Reviews
from Real Business People

Excellent support and advice at very reasonable cost. They would definitely be my first port of call if I ever had a similar problem, and I would highly recommend. They saved me thousands and untold stress and worry.

Google review

Brendan and the Staff at Helix Law handled a particularly difficult case for us, they provided an excellent service and I can highly recommend using this company

Very useful getting counsel from Sam on a tricky matter – he certainly knew his stuff. 🙂 Matter successfully handled, and i would not hesitate to use Helix Law again or indeed recommend.

Very swift response and helpful advice by Alex Cook, most importantly this is clearly a business with integrity – would definitely recommend!

I spoke at length with their partner Alex Cook about a very complicated litigation case. He was very helpful and quite candid with his advice. I have worked with many lawyers some in the top 500 listings, but found him to be very knowledgable and competent,I personally wouldn’t have any hesitation in recommending him .