Injunction

An injunction is a court order commonly obtained in company disputes in favour of one party. It is a legal measure to compel a party to stop them from doing something that could damage the company (prohibitory) or to ensure that they do something that is necessary to protect the business (mandatory).

For example, if shareholders believe a director’s decisions are harming the company, they may go to court for an injunction to halt those actions. Alternatively, if shareholders are acting in a way that the directors believe could harm the company, the directors may seek an injunction to prevent this or to enforce a course of action that benefits the company. This legal remedy is a powerful means to quickly address disputes and protect the interests at stake.

Injunctions are a very useful and important legal measure in litigation, and crucial to protect the business; they can be awarded on an urgent basis and outside of normal Court hours if necessary. Our lawyers have successfully obtained injunctions on behalf of clients on an urgent basis and sometimes outside of normal working hours. Our lawyers are available outside of normal working hours, and we operate a 24/7 chat service direct to our lawyers should you require any urgent advice.

If you are involved in a dispute within your company, our expert lawyers will consider and advise on whether an injunction is necessary to protect the company’s interest. Please call us today for a Free Consultation on 0207 459 4037 or complete our online booking form.

A Court injunction can be sought in director and shareholder litigation when there’s a need to quickly prevent or require certain actions to protect the company’s interests. It is often used when there is a risk of significant harm that might not be adequately compensated by damages later.

There are 2 types of injunctions available in company disputes:

• Prohibitory injunctions, which stop a party from taking particular actions, such as making unauthorised decisions or transactions.
• Mandatory injunctions, which compel a party to do something, like reversing an action already taken or disclosing important information.

An injunction can prevent a director from taking certain actions by legally restricting their ability to make decisions or transactions that go against the company’s interests or shareholders’ rights. The terms of the injunction (or undertaking) must be clear. If a director were to ignore such an order, they would be at risk of contempt of court proceedings, which can have serious legal consequences including a fine and criminal prosecution.

Our lawyers can apply for an injunction on an urgent basis to stop a director from taking steps that might harm your business. If you believe a director or shareholder is acting against the company’s best interests, we can quickly step in to assist. Our team would handle the application, argue your case, and ensure the injunction is enforced.

To book a Free Consultation with our expert dispute resolution lawyers, you can call us on 0207 459 4037 or you can use our booking form below.

Yes, an injunction can be used to prevent the transfer of shares or assets in a company. This type of injunction is typically sought to maintain the status quo and prevent any change in ownership or control that might affect the company’s value or the interests of its shareholders until the dispute is resolved.

The speed at which an injunction is made is a crucial factor that the Court must consider in granting or refusing the application for an injunction. In urgent cases, where immediate harm must be prevented, a court can issue an interim injunction very quickly, sometimes within hours (and sometimes outside of normal working hours if necessary). However, this rapid response requires clear evidence of the urgency and potential harm of not granting the injunction on an urgent basis.

Our expert lawyers have previously obtained an injunction within 24 hours of being instructed but it will depend on the nature of the application, Court availability and the evidence required to strengthen your application. We are available outside of normal working hours, and we operate a 24/7 chat service direct to our lawyers should you require any urgent advice.

To book a Free Consultation with our expert lawyers, you can call us on 0207 459 4037 or you can use our booking form.

To obtain an injunction in the UK Courts, the party seeking the injunction must apply to the Court with evidence, usually in the form of a written witness statement. The application will detail the necessity for the injunction and the potential harm that could occur without it. The court then considers the balance of convenience, the merits of the case, and whether damages would be an adequate remedy. If the court is persuaded, it may grant the injunction either after a hearing or, in urgent situations, without a hearing or the opponent being given notice (ex parte).

To obtain an injunction in UK courts, our lawyers will first evaluate your situation. If an injunction is advised, we’ll prepare and file the necessary legal documents and represent you in court to make the case for urgent action. We handle all the details, aiming for a quick and effective resolution to protect your interests.

To book a Free Consultation with our expert lawyers, you can call us on 0207 459 4037 or you can use our booking form below.

Yes, seeking an injunction comes with risks and potential drawbacks. The main risk is that if an injunction is granted but later found to have been unnecessary, the party that sought the injunction may have to compensate the other party for any damages caused by the injunction. Also, there are cost implications, as legal fees can be significant, especially if the injunction is contested.

Our expert lawyers have decades of experience in navigating injunctions and corporate disputes. We will carefully manage the risks of litigation and provide you with legal and commercial advice to get the best outcome for you quickly and cost-effectively. Please call us for a Free Consultation on 0207 459 4037 today.

The Court will consider several factors when deciding whether to grant an injunction, including:

• The likelihood of success in the final hearing: If the case doesn’t appear strong, an injunction is less likely to be granted.
• The balance of convenience: Which party will suffer more harm if the injunction is or isn’t granted?
• Whether damages are an adequate remedy: If money can compensate the harmed party, an injunction may not be necessary.
• Any delay in applying for the injunction: Waiting too long to seek an injunction can be seen as an indication that the matter is not urgent.

It is important to ensure that the application for an injunction has all the necessary evidence and is detailed enough to persuade the Court to grant the injunction sought. Our lawyers are experts in corporate disputes between shareholders and directors, if you have any questions about the factors the Court considers when granting or refusing an injunction application please do not hesitate to call us for a Free Consultation on 0207 459 4037.

Yes, an injunction can be obtained without notifying the other parties, known as an ‘ex parte’ injunction. This is usually in situations where giving notice could enable the other party to take actions to defeat the purpose of the injunction, like moving assets abroad. However, ‘ex parte’ injunctions are granted with caution and with require a higher threshold of evidence to persuade the Court.

The duration of an injunction depends on the circumstances of the case and the type of injunction granted. Interim injunctions last until a specified date or until further order; this will usually be set out in the Court order granted. They can be extended or varied if circumstances change or if more information comes to light.

If a party breaches an injunction in director and shareholder disputes, the consequences can be serious. They may be held in contempt of court, which can lead to fines, seizure of assets, or even imprisonment. Such breaches are taken seriously because they undermine the authority of the court.

Yes, an injunction can be used to prevent a director from competing with the company, typically through a non-compete clause. If a director violates the terms agreed upon in their contract, an injunction can enforce those terms, protecting the company’s interests.

Injunctions are important in corporate dispute but they are by no means the only route. We may be able to agree terms with the opponent on your behalf by way of an ‘undertaking’ which can be on the same terms as those that would be sought in a Court application for an injunction.

Alternatives to seeking Court action include negotiation, arbitration, or mediation. These can often be faster and less costly, preserving business relationships while resolving disputes.

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.

To book a Free Consultation with our expert dispute resolution lawyers, you can call us on 0207 459 4037 or you can use our booking form.