Family Business Dispute - Professional Advice?

[flattea2]

Can anyone point me in the direction of specialist firms that deal with disputes in family businesses?

This dispute is becoming intractable so it is important that both parties feel they are getting fair and impartial advice.

The issue is related to business roles and ownership. It is not between spouses.

The parties may be open to some form of mediation or arbitration.

Many thanks.

 

[Brendan Burgess]

It is a very difficult one. I don't think that there are such specialists. I am sure that there are arbitrators who could make a ruling on a dispute to avoid going to court. But it seems that you need more than this.

Do both sides trust the accountant or auditor as independent? If not, they should both seek an accountant as an advisor and the accountants should be able to negotiate a deal for them. If they fail to agree a deal, they would appoint an arbitrator to decide.

As it is probably going to be an ongoing issue, it might be a good idea to appoint an independent chair to the board of the company.

Brendan

 

[flattea2]

It is a very difficult one. I don't think that there are such specialists. I am sure that there are arbitrators who could make a ruling on a dispute to avoid going to court. But it seems that you need more than this.

Do both sides trust the accountant or auditor as independent? If not, they should both seek an accountant as an advisor and the accountants should be able to negotiate a deal for them. If they fail to agree a deal, they would appoint an arbitrator to decide.

As it is probably going to be an ongoing issue, it might be a good idea to appoint an independent chair to the board of the company.

Brendan

One party (say A) does not trust the company accountant as they have personal ties to the other party (say B). The accountant offered to involve another person in their firm to represent A. However this was not agreeable to A.

There has already been a solicitors letter involved to try to force B into giving up an asset which is in their own name. B has countered by giving A some options to exit the business (and offered to leave themselves if A agreed to a purchase price)

I had a look around and surprisingly found it difficult to find specialists (as you noted Brendan)

My feeling is that to get solicitors to mediate would inflame the positions but someone like an accountant or business advisor may get them to knock their heads together (hopefully not too late).

I am going to approach some of the accountancy firms and see if they can help.

 

[Graham_07]

Any chance that this may be of help :
[broken link removed]

They have lists of accredited mediators around the country
(not connected but have heard of their accredited mediation courses )

 

[Fishy]

These situations are very difficult for all sides and it is very difficult to be impartial. I was a Commercial Lending Manager in a Bank before leaving some 4yrs back and would have come across numerous situations such as yours and none of them were easy to resolve.
I met with dozens of Accountants during my career and most of them were prett average (no disespect intended to an Accounts reading this) and would not negotiate their way our of a wet chip-bag. In saying that, I did happen to meet one exceptionally sharp & most importantly Diplomatic Accountant (whom I immediately appointed as my Advisor in all Tax matters) who has offices in Dublin & Mayo. If your family business is in either of these areas you could worst than at least having a chat with him.
I can give you his details if you like.
Good luck in any case.

 

[flattea2]

Graham and Fishy, thank you

Fishy, if you could PM me the details I would be most grateful.

Anyone with any experience with the MII that Graham mentioned?

 

[Purple]

This is a very difficult situation. The only thing I can add is that whomever mediates needs to understand the business finances and the sector the business is operating in. Since the company accountant is not acceptable how about a senior accountant from the firm which acts as auditor?