Unlocking Corporate Deadlock: Controlling the Gamble

18 July 2024

In the intricate tapestry of corporate governance, conflicts and disagreements are inevitable. However, when these tensions escalate to the point of impeding decision-making and paralysing the functioning of a company, they give rise to what is known as corporate deadlock.

Our colleagues, Carmen and Delia, highlight legal pathways such as shareholder exclusion and withdrawal procedures, despite their complexity. Additionally, they emphasize the importance of robust shareholder agreements and innovative buyout clauses like “Russian Roulette” and “Texas Shootout” to prevent and resolve disputes. These tools are crucial for maintaining efficient corporate governance and overcoming potential stalemates.

For further insight from our colleagues, Delia Dumitrescu and Carmen Peli, on the causes and consequences of deadlock and how to break it, read the article published on the website of the Corporate and M&A Law Committee of the Legal Practice Division of the International Bar Association, here.