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Perth legal advice on internal disputes within small Australian companies

In Australia there are two main types of companies. The first type being a publicly registered company. The other type of company is the most popular type of company in Australia, being the proprietary limited company or what we commonly see on invoices and boxes as “PTY LTD”. This article explores briefly what internal disputes may arise in a proprietary limited Australian registered company.


Internal disputes within a small Australian company

Many things can go wrong within a small Australian company’s internal management. This is especially the case for small companies registered in Australia. The reason is simple, most small companies are run by small business owners and/or laypeople (who have limited or no experience running an Australian company) who were advised at some stage to have their small business set up as a company. Most of the time it can be an ideal business set up, if it is managed properly. Sadly, this is never the case in reality in practise.


Some examples of internal disputes that are common within a small Australian company include the following:

  • Disagreements on the direction of the company;

  • Disagreements on company management style;

  • Disagreements involving share capital;

  • Conflict between directors;

  • Conflict between shareholders; and

  • Conflict between directors and shareholders.


If you are a director or shareholder of a small company registered in Australia, you may find yourself in a similar situation to the above at some stage of your company’s existence. It is advisable to speak to a Perth lawyer at BMS LAW as soon as possible to understand your legal rights and legal obligations. Company law in Australia is very complex, and in conflict situations, it is always recommended to involve a Perth lawyer to provide you with competent legal advice.


Speak to us today at (08) 6389 0270 or email info@bmslaw.com.au


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