Luxembourg is an open country when it comes to foreign investment which is why many overseas enterprisers set up companies. Many of them open their own companies in Luxembourg, while other choose to enter into various partnerships, joint ventures or other types of businesses which imply the association of one or more foreign investors with local ones. These are also the most frequent cases in which shareholder disputes arise.
Whether they imply economic factors or misunderstandings between the owners, shareholder disputes have a great resolution rate in Luxembourg due to the mechanisms the litigants can make use of. Our attorneys in Luxembourg can advise you in shareholder litigation cases.
Foreign or local shareholders in companies registered in Luxembourg can settle their inconsistencies in various ways. If a while ago court litigation was the most employed action, nowadays Luxembourg is one of the most prestigious arbitration centers in the world and home of the European Court of Justice which encourages arbitration and mediation in order to settle shareholder conflicts. Conciliation is also available for resolving shareholder disputes in Luxembourg.
No matter the type of action one decides to take, it is better to ask for legal advice from a Luxembourg law firm in order to obtain the best result. Legal advice is also advisable in case of arbitration or conciliation.
While conciliation, arbitration and mediation are amicable ways of resolving shareholder disputes, litigation implies a trial before one of the Luxembourg courts of justice.
Upon the registration of a company in Luxembourg, many shareholders draft agreements through which several aspects related to the activities, rights and obligations of the owners of the business. These agreements also include clauses related to the resolution of shareholders disputes in Luxembourg companies. Most of shareholders choose arbitration or mediation when it comes to settling their disputes.
However, there are also cases in which court litigation cannot be avoided and in that case, legal representation is a must.
For full information on how to settle shareholder conflicts, please feel free to contact our lawyers in Luxembourg.
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