Board Representations & Conflict Situations
_ Execution of supervisory and advisory board representations
_ Advice and dispute resolution in connection with conflicts amongst shareholders
Advisory and supervisory boards are not exclusively a peculiarity and privilege of internationally operating holding companies and groups. Also small and middle market companies are increasingly availing themselves of such boards. According to a study, since the year 2001 already 40 percent of German manager-operated small and middle market companies have consulted their supervisory or advisory board in connection with important corporate decisions.
But corporate governance in terms of non-operating external supervisors is not only a sound instrument for manager-operated companies as it is also for family-managed companies.
In many cases, the appointment of such a body may improve the basis and quality of corporate decisions. And for such situations we would like to bring in our expertise and know-how for the benefit of our clients, e.g. in a situation where a disposal of the company is intended, the enlargement of the shareholders’ base or a flotation on the stock exchange.
Within the next years a couple of thousand privately-owned and family-managed companies will be handed over to new, often non-family managers or disposed to a competitor. As a result of that, conflicts amongst shareholders but also with management and other stakeholders are foreseeable. Particularly, in such situations often suppressed conflicts and issues appear on the agenda, such as strategic questions or the filling of management position. In many cases with considerable consequences for all parties involved. Standstill, blockade and – as a result thereof – destruction of shareholder value is a direct consequence thereof.
In order to control and proactively manage such conflicts, the involvement of an advisor might be beneficial. And this is the point where we would like to add value for our clients. With an in-depth analysis of the situation and the reasons, the identification of courses of action available and, if desired, the implementation of a conflict management and solution system.