Diverting Business

Diverting Business

We take immense pride in being a leading law firm dedicated to serving clients with exceptional and cost-effective legal representation and strategic expert counsel. Go Legal is here to help with your legal issues.

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Our litigation solicitors have a proven track record of delivering successful outcomes for clients. Go Legal was founded to make exceptional lawyers accessible and solutions affordable.

Our lawyers and mediators have decades of experience and specialise exclusively in commercial litigation. Our lawyers have been described as “the best litigators in the country” & provide solutions to clients in the following areas of law:

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Karim Oualnan

Partner and Managing Director

Our Story

Having worked more than a decade in law and fuelled by his passion for access to justice, Karim envisaged a different law firm – one that stood as a symbol of hope, fairness, and an unwavering dedication to justice. By providing legal services through a partnership with Go Legal and Spencer West, Karim has been able to create this vision.

Karim did not have a storybook beginning. His childhood echoed with challenges, where he witnessed his family and friends struggle with legal issues. It made him realise that there are individuals and businesses caught up in the complexities of the UK legal system who need reliable, affordable and technically astute lawyers to get results.

Our lawyers make a promise – we will work hard to achieve the best outcome for you. We are here to help!

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Our firm’s values ensure that we consistently exceed client expectations. We are:

  • Honest: Our lawyers are trusted by many clients
  • Generous: We are technically astute lawyers with compassion, & a genuine desire to help
  • Dedication: Our lawyers tackle each case with relentless dedication & work tirelessly to achieve a successful outcome
  • Innovative: We have access to technology & strategies not used by other law firms
  • Guardians: Our lawyers will guide you through every legal step, ensuring clarity & understanding at all stages







*through our exclusive partnership with Spencer West LLP

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Why instruct Go Legal



Our team of award-winning legal experts are renowned for their technical expertise, honesty and dependability. We prioritise customer satisfaction by providing personalised attention and ensuring that we consistently exceed our clients' expectations throughout.

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We understand the urgency of legal matters and offer 24/7 support to clients. Whether you require immediate assistance with legal advice or representation, our team is always available to provide prompt and reliable support. We will create a Whatsapp group with you and your legal team once instructed if you have any out of hours questions throughout your litigation and dispute resolution case.

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Fair and Transparent pricing

We provide honest estimates for our legal services at the very outset. We are often instructed on an hourly rate basis, but we can offer discounted fixed fee packages, and no-win no fee agreements. For further information, please see our Funding page which sets out some of the packages we may be able to offer clients.

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Efficiency and dedication to our clients’ needs are the cornerstones of our practice. We have earned the appreciation and praise of clients and even our opponents by consistently meeting high standards and delivering exceptional results.

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Our team consists of highly qualified and regulated legal professionals who possess extensive knowledge and experience in dispute resolution. You can trust that your legal matter will be handled by specialist and experienced lawyers who provide the highest level of service to achieve the best result for your case.

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We are so confident in our ability that we give our clients a service level guarantee. If you are not happy with the service we provide on your case, you can request a 10% discount on our invoice(s) no questions asked.

Free Director & Shareholder Assessment

Complete the short 2-minute questionnaire below to receive a tailored report to your email, summarising the assessment and providing further guidance on the potential director or shareholder issue within your company.

Disclaimer: Please note that this questionnaire is for initial assessment purposes only and does not constitute legal advice. The information provided in this questionnaire and subsequent report will be used solely for evaluating the potential director and shareholder dispute. By submitting this form, you agree to our privacy policy and terms of service. Please do not hesitate to call us or complete our booking form below to schedule a Free Consultation with our expert director and shareholder dispute lawyers.

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Fixed Fee Packages

Our funding solutions have been designed by our lawyers to alleviate the financial burden and enable you to focus on seeking the justice and resolution you deserve. 

Consultation & Strategy

This package includes:
  • Considering your company dispute and relevant evidence in advance of conference
  • Detailed investigation & due diligence of your company dispute
  • Up to 2 hour consultation with our expert lawyers
  • Outlining potential solutions and the best course of action to resolve the dispute
  • Letter of advice setting out merits of dispute and the next steps (and strategy)

Conflict Resolution & Negotiation

This package includes:
  • All Consultation & Strategy package
  • Preparing a detailed letter before claim (or response on your behalf)
  • Considering the merits of an injunction to protect the business from further loss
  • Facilitating negotiation and mediation between disputing parties
  • Advising on alternative dispute resolution mechanisms to avoid litigation
  • Preparing for an extraordinary general meeting, if necessary, to address the dispute


This package includes:
  • All Case Preparation package
  • Preparing Claim Form and Particulars of Claim to be filed at Court & served
  • Managing all aspects of the litigation process (and court advocacy)
  • Considering & advising you on any Defence filed
  • Further conferences with our expert lawyers & counsel
  • Considering any early Part 36 offer and/or mediation


Karim Oualnan handled a contractual case to a successful resolution. Karim was very diligent, always providing great, honest advice in which Karim always put my best interests at the forefront of his suggestions during the case. He is very reliable, trustworthy and always on hand to help. I would highly recommend Karim.
I have no hesitation in recommending the services of Karim and his team. I had been banging my head against a brick wall after my bank forced the closure of my accounts and froze a substantial amount of my cash assets. Karim quickly reviewed all of the documentation relating to the matter and issued a letter before claim and formal...
We hired Karim for a commercial dispute, with a UK based entity that breached our P.O. terms. The difficulty with the case was that we have paid a down payment without much leverage to recover it. The supplier misled us forever 2 years and finally decided not to pay our down payment. However, with the support of the lead lawyer...
Very satisfied with the way that Karim Oualnan and his team took hold of a messy conveyancing professional negligence claim, and progressed it all the way through to an amicable settlement in just over 6 months. Professional, courteous, knowledgeable and also pragmatic with advice and strategy. I would not hesitate to recommend.
Karim offered me some advice regarding a lease issue. He was kind , courteous, knowledgable and above all really generous with his time and support . I would recommend Karim in a heartbeat for explaining things so clearly without patronising and for making me feel so at ease.
Karim is wonderful to work with, attentive, calmed and a knowledgeable professional. I appreciate his help a lot, he guided me in a way that not a lot of people does. Reliable and a great motivator.

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Diverting Business FAQs

In director and shareholder disputes, “diverting business” refers to the act where a director or a group of directors diverts potential or existing business away from the company to another entity, typically for personal gain.

This could mean redirecting customers, using company resources for personal benefit, or setting up competing ventures. Such conduct can undermine company profits and shareholder value, and is often in contravention of the directors’ obligations to act in the best interests of the company.

Yes, diverting business can certainly be considered a breach of fiduciary duty. Directors owe their company a duty of loyalty and must act in its best interests, as stipulated under the Companies Act 2006. By diverting business, directors may be prioritising their interests over those of the company, thus breaching the duty they owe. Proving this breach is central to legal challenges in such disputes.

Shareholders can keep an eye out for signs that business may have been unlawfully diverted. These may include:

  • Unexplained declines in company revenue or profits
  • Directors starting a new, similar venture or having interests in a competing business
  • Changes in customer or supplier relationships without clear business rationale
  • Shareholders should scrutinise financial statements, board meeting minutes, and other company records for evidence of such activities.

If you think that a director is diverting business, please do not hesitate to contact us urgently. You can call us on 0207 459 4037 or complete our online booking form for a Free Consultation today.

If shareholders suspect business diversion, they have several legal actions at their disposal:

  • Raising the issue with the board of directors or at a shareholder meeting
  • Demanding an independent investigation into the alleged activities
  • If satisfaction is not obtained through internal mechanisms, shareholders may consider legal proceedings, including derivative actions on behalf of the company.

Our expert lawyers are experienced in navigating disputes concerning the diversion of business, please get in touch with us today for a Free Consultation.

If business diversion is proven in court, shareholders may obtain several remedies:

  • Injunctions to stop the diversion and prevent future breaches
  • Orders for directors to account for profits made from the diverted business
  • Damages to compensate the company for any loss suffered
  • In some cases, the court may order the rescission of contracts entered into by the directors in breach of their duties.

For detailed advice and to explore the full spectrum of legal options available, shareholders are encouraged to seek legal counsel. Our specialist dispute resolution team provides expert guidance and representation in such disputes. To begin addressing concerns of business diversion, please book a Free Consultation with our expert dispute resolution lawyers by calling 0207 459 4037 or using our online booking form.

Directors can defend against allegations of diverting business by demonstrating that their actions were in line with the company’s best interests or that they had informed consent from the company. This could include showing:

  • Proper authorisation was obtained from the board or shareholders for their actions
  • No conflict of interest existed, or if it did, it was fully disclosed and managed according to company procedures
  • They genuinely believed, with reasonable grounds, that the venture would benefit the company.

It is essential for directors to maintain transparent records and clear communications to substantiate these defences.

Directors are encouraged to seek advice from our experienced lawyers for guidance and representation in such disputes.

Yes, there are time limitations for bringing claims related to business diversion. Under the Limitation Act 1980, claims for breach of trust or duty must generally be brought within 6 years from the date on which the cause of action accrued. However, where a director has concealed a breach, the limitation period may not start until the claimant has discovered the breach or could have discovered it with reasonable diligence.

It is nevertheless important to act swiftly if business is being diverted as it could significantly damage the business and cash flow if action is not taken quickly. Our lawyers are here to help; do not hesitate to call us on 0207 459 4037 for a Free Consultation today.

Yes, business diversion claims can indeed be brought concurrently with other director/shareholder disputes. These could include claims for breach of contract, breach of statutory duty, or other forms of equitable relief. We will need to consider consolidating these claims into a single claim if they are related, streamlining the legal process and potentially saving on costs and time.

Company auditors play a critical role in uncovering business diversion. Their objective scrutiny of the company’s financial statements can reveal discrepancies that suggest diversions, such as unexplained decreases in revenue or unusual transactions.

Auditors have a duty to report to the company any significant findings that may point to fraud or error, including potential cases of business diversion. It is their vigilance that can often bring to light the initial signs that such a breach of duty has occurred.

If you are facing issues related to business diversion or have concerns about directorial conduct, our legal team can offer comprehensive support and guidance. To delve into the specifics of your situation and explore the avenues available to you, book a Free Consultation with our expert dispute resolution lawyers. Contact us on 0207 459 4037 or use our booking form to arrange a discussion.

Business diversion can significantly impact the financial health and valuation of a company. When business opportunities are diverted, the company may experience:

  • Loss of Revenue: Diverted opportunities can lead to a direct loss of sales and profits, diminishing the company’s financial performance
  • Damaged Reputation: The discovery of business diversion can erode trust with shareholders, customers, and suppliers, potentially affecting future business
  • Decreased Valuation: The combined effect of reduced profits and damaged reputation can lead to a lower company valuation, impacting investment appeal and market position.

Alternative Dispute Resolution (ADR) methods such as mediation and arbitration can be highly effective in resolving disputes related to business diversion. ADR can:

  • Facilitate a Settlement: ADR offers a confidential setting where parties can reach a mutually satisfactory resolution without the adversarial nature of court proceedings
  • Save Time and Costs: Resolving disputes through ADR is often faster and more cost-effective than litigation
  • Preserve Relationships: ADR can help maintain business relationships by fostering a more collaborative approach to dispute resolution.

Our lawyers are strong advocates for mediation, which can often lead to favourable settlements. Several of our lawyers are trained mediators and expert negotiators who are registered members of the Chartered Institute of Arbitrators (CIArb) and the International Mediation Institute. Our expertise in mediation gives our lawyers a significant and unique advantage when navigating settlement discussions on your behalf.

Directors found guilty of diverting business may face criminal consequences if their actions involve elements of fraud, theft, or deception. Under UK law, such conduct could lead to:

  • Prosecution: Directors may be prosecuted under the Fraud Act 2006 or the Theft Act 1968.
  • Penalties: Convictions can result in fines, disqualification from directorship, and even imprisonment.

Yes, a director can be removed from their position for engaging in business diversion. Shareholders can:

  • Vote to Remove: A majority shareholder vote can remove a director in accordance with the company’s articles of association and the Companies Act 2006.
  • Apply to Court: In certain circumstances, shareholders may apply to the court for an order to remove a director for breach of duty.

If you wish to remove a director from your company, please do not hesitate to contact our expert lawyers today for a Free Consultation on 0207 459 4037.

Shareholders can take proactive steps to prevent business diversion:

  • Implement Oversight Mechanisms: Regular audits and the establishment of internal controls can monitor directorial actions.
  • Set Clear Policies: Company policies should clearly outline prohibited conduct and the process for handling conflicts of interest.
  • Review Director Agreements: Employment contracts and director agreements can include clauses that specifically prohibit the diversion of business.

For detailed guidance on these issues and to safeguard your company against business diversion, consider seeking legal advice. Our lawyers offer comprehensive legal support to navigate the complexities of director and shareholder disputes.

To discuss protective measures and enforcement actions, book a Free Consultation with our expert lawyers by calling 0207 459 4037 or using our booking form.

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