Edinburgh is buzzing this August, and not just from the usual festival crowds. The Oasis reunion, a moment fans thought impossible after years of high-profile feuding, has filled the city with excitement. But while some fallouts can be patched up, business disputes are rarely resolved with a handshake.
Scottish accountancy firm Henderson Loggie says shareholder disagreements are among the most disruptive conflicts a business can face, often grinding decision-making to a halt and souring long-standing partnerships. Left unresolved, they can damage both the company and the people behind it and may even lead to expensive legal action.
Common triggers for shareholder disputes include allegations of profit diversions, claims of minority shareholder oppression, disagreements over share valuations and allegations of financial mismanagement.
In cases involving alleged profit diversion or minority oppression, a forensic accountant can analyse detailed financial data to determine whether profits are being artificially reduced to avoid paying dividends.
When share valuations are disputed, an impartial valuation by a forensic accountant can break the deadlock. In Scotland, an Expert Determination may be required, with ICAS often appointing a forensic accountant to provide a final, binding valuation.
In allegations of financial mismanagement, forensic accountants review records to identify irregularities or signs of appropriation, providing credible evidence that can be used in negotiations or legal proceedings.
Rowena Eves, forensic accountant at Henderson Loggie, said: "Year-end financials can be a flashpoint for shareholder disputes which can be emotionally charged and financially damaging. Our job is to bring clarity and objectivity to the situation and to resolve disputes before they turn toxic. By focusing on the facts, we can help businesses reach a resolution that’s fair and commercially sound."
While Liam and Noel Gallagher may have put their differences aside for the sake of the fans, business disputes often demand a more structured resolution. A forensic accountant’s independent opinion can help shareholders navigate complex disagreements and perhaps even find common ground.
Henderson Loggie
Chartered Accountants, Tax and Business Advisors based in Aberdeen, Dundee, Edinburgh and Glasgow.
