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Rebuilding Team Unity

This case study highlights the power of mediation in resolving internal conflicts within a company’s leadership.

The dispute

 A, B and C are the Directors of Company G. A is the Technical Lead while B and C focus on management of the Company. B and C had recently obtained majority in Company G by buying out the small shareholders. A is unhappy with the way the company is being run and withdraws his support to Company G. As a result the growth of Company G stagnates. A files a suit for oppression and mismanagement which is countered by B and C. Company G is in losses and faces closure.

The mediation

During mediation, the grievances of all parties came to light.  A was unhappy by the manner in which B and C had gained their majority. He felt excluded, disrespected and hurt that he was not consulted and updated by B and C while they were buying out the other shares. Additionally, although he was the Technical Lead in the company he felt his technical inputs and suggestions were being disregarded by B and C who were focused on the day to day management of Company G. The mediator heard all the perspectives and was able help A, B and C understand their shared interest in Company G.

The outcome

The parties entered into a comprise agreement where A’s role as technical lead was validated and preserved. He was also included in some aspects of the day to day management of Company. A was compensated with an additional dividend within a year.

Conclusion

The mediator used the expert lawyer to help the parties (1) understand the law (2) the risks and opportunities of litigation (3) obtain a reality check on the cost and time of litigation (4) draft , register and execute the terms of the agreement, after the terms were found through the mediation.

 

After terms regarding division of the property were found, the mediator worked with the siblings through a process to rebuild their relationship – a need that was clearly identified by all the siblings, early on in the mediation.

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