Ownership Dispute Following the Death of the Company Manager Resolved Favourably
30.05.2025
Co-author: Iryna Aleksieieva.
Client Background:
Our client was a limited company’s sole legal owner and director, having lawfully purchased it several years ago. For operational convenience and due to their longstanding relationship, a close friend managed the company on our client’s behalf under a valid Power of Attorney.
Issue:
Following the unfortunate passing of our client’s friend, the beneficiaries of the deceased’s estate made hostile claims, alleging that the company was never truly sold and that ownership remained with the deceased. They attempted to challenge our client’s legal title to the company, asserting that the transfer of ownership was a sham, and threatened legal proceedings to seize control of the company.
Actions Taken:
- Comprehensive Review & Legal Positioning:
Upon instruction, we conducted a detailed review of all relevant documents, including the Power of Attorney, share purchase records, and historical filings. We meticulously gathered the facts and prepared a formal legal position to address the claims.
- Communication with Opposing Party:
We formally communicated our client’s legal position to the opposing party, asserting the validity of the ownership transfer and our client’s legal rights.
- Settlement Negotiations:
Through effective legal negotiation, we successfully secured a settlement agreement that upheld our client’s legal title and control over the company, resolving the matter without resorting to litigation.
Outcome:
- Ownership Secured: Our client retained full ownership and control of the company.
- Dispute Resolved Out of Court: The matter was settled favorably, avoiding the need for court proceedings.
- Legal Protection: Our client’s legal position was protected, and their company control was reaffirmed.
If you are facing a dispute over company ownership or legal title or need help navigating complex estate claims, Sterling Law’s experienced team can provide the expert guidance you need. Contact us today to ensure your legal rights are protected and your interests safeguarded.
