The essence of the conflict:
A minority participant, who was also a director of the plant, obstructed a number of key decisions. In particular, the opponent blocked the prolongation of the credit line, lured a number of key managers to his side and demanded to buy out the stake for a price 200% higher than the market price.
The complexity of the project was that the shareholders were in a long-lasting corporate conflict. The continuation of the conflict could have led to a complete suspension of operations at one of the largest meat processing plants in Russia.
The Law Office Actions
The attorneys proposed a two-phase plan to protect and preserve the business, under which:
1.
Amended the foundation documents and strengthened the corporate control of the settlor
2.
Conducted multi-step negotiations with the opponent to negotiate favorable terms for the principal
3.
Developed and approved a comprehensive agreement to resolve the conflict peacefully
Result
1.
The Law Office reached an agreement to buy out the opponent's share at a fair price - 2.5 times lower than the original cost.
2.
It also managed to retain the largest business and ended the corporate conflict through a peaceful settlement.
