- but you get stuck in your home country during Covid
- when you come back to the company, a lot of monkey business has happened
- and nobody is owning up.
That's what happened to a Malaysian client. Naturally, she wanted out, but nobody was paying her any attention for months.
So I sent a letter of demand to her former partners, together with an offer to mediate. I made them choose their own adventure so that they would be motivated to find a solution.
On mediation day, the first thing they did was lowball the client for 50% of the net value of the shares. But we were prepared and I saw it coming - I asked the opposing lawyers to help me explain how to reconcile that offer with the company's accounts.
The mediator got the hint, and brought the other side into a private discussion.
And my client and I ended up waiting in our own room for almost an hour.
In the end, my client got almost 90% of what she asked for, without having to pay hefty legal fees. Plus, she got to enjoy Chinese New Year without the uncertainty of court proceedings.
With the right mediation strategy, the other side will be trying their best to give you an offer even if they had previously ignored you.
... Read moreHaving navigated business disputes myself, I fully appreciate how stressful it can be when you're sidelined in company matters, especially after a long absence due to unforeseen events like the Covid pandemic. In many such cases, mediation serves as a powerful tool to break deadlocks without resorting to expensive court procedures.
From my experience, preparation is key. Understanding the company’s financials thoroughly before mediation helps anticipate lowball offers and prepare counterarguments effectively. Encouraging the opposing party to engage in constructive dialogue rather than avoidance can shift the negotiation dynamics favorably. The mediator's role in signaling and steering parties toward agreement is often underestimated but critical.
In this case, the combination of sending a firm letter of demand and proposing mediation created urgency and an opportunity for the other side to reassess their stance. The tactic of making them 'choose their own adventure' leverages their incentive to avoid prolonged conflict and costs.
Moreover, securing about 90% of the requested share value demonstrates that with the right advocacy and negotiation strategy, clients can achieve fair outcomes even when initial offers seem dismissive. This experience reinforces the advantage of mediation in shareholder disputes, especially when timely resolution matters — like avoiding disruption over major holidays such as the Chinese New Year.
For anyone facing a similar corporate impasse, my advice is to document your claims carefully, seek experienced legal counsel who can negotiate assertively, and remain open to alternative dispute resolution methods. This approach not only saves money and time but also preserves vital business relationships and peace of mind.