Shareholder Disputes

Blackrock Hospital Limited v Sheehan & others

Shareholder disputes are often a common and unavoidable part of the commercial world and can arise in a variety of circumstances. If these disputes are not dealt with in the right manner, they have the potential to damage relationships between shareholders and disrupt efficient decision making within the company. This was recently evidenced in Blackrock Hospital Limited v Sheehan and others [2017] IEHC 387, when a dispute arose between the shareholders of Blackrock Hospital and the court was asked to construe certain provisions of the shareholders agreement.

Issue

Blackrock Hospital Limited ("BHL"), the owner of the premises known as the Blackrock Clinic, asked the court to determine whether, having regard to the Shareholders' Agreement dated 28 March 2006 ("the Agreement") and the provisions of BHL's constitution, BHL and each of the respondents must execute a deed of adherence before BHL could proceed to register a family transfer of shares. This question was posed in...