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Strategies for Resolving Internal Conflicts Within Company Ownership

internal conflicts between corporate shareholdes
internal conflicts between corporate shareholdes

Businesses are often started by more than one person, which has many positive aspects: it fosters the generation of diverse ideas, increases opportunities, and accelerates progress. However, it’s not uncommon for conflicts to arise among company founders or shareholders, posing significant obstacles to business development.


Reasons for misunderstanding between shareholders

When such misunderstandings occur, shareholders must promptly resolve disagreements or, if consensus cannot be reached, make decisions that won’t hinder business operations. Based on our observations, two main causes of shareholder disputes emerge:

  1. Lack of Involvement: Passive shareholders who aren’t actively engaged in company operations often lack access to crucial information, particularly regarding financial matters. This issue is exacerbated when passive shareholders don’t receive dividends or other financial benefits.

To address this, it’s essential to engage an independent consultant who can provide transparent insights into company affairs. At Kudos Georgia, we offer a specialized service called Founder Representation,” aimed at bridging this information gap. We conduct thorough investigations into the company’s operations, finances, and compliance, presenting comprehensive reports to passive shareholders. These reports cover areas such as:


  • Evaluation of procurement practices to identify potential misappropriation of funds.
  • Detection of fictitious employees or service providers and their associated compensations.
  • Assessment of tax compliance and allocation of budgetary funds.
  • Identification of unnecessary expenses and undocumented income.
  • Review of accounting practices for accuracy and completeness.
  • Additionally, we provide financial reviews and assessments, along with various financial reports, to help passive shareholders understand the company’s financial health accurately.


  1. Divergent Strategic Visions: Shareholders may hold differing opinions on the company’s direction, particularly when one shareholder also serves as the company’s leader. In such cases, forming an Advisory Board comprising professionals from diverse fields, including financial management experts from Kudos, can be highly beneficial.

The Advisory Board facilitates strategic decision-making, ensuring that initiatives are backed by analyzed data and insights. By depersonalizing the decision-making process and relying on collective expertise, companies can develop robust strategic plans that align with their long-term goals.

We at Kudos Georgia aim to create a more conducive financial environment for businesses by offering tailored solutions to address shareholder conflicts and enhance strategic decision-making processes.


Giorgi Balesiashvili

Managing Partner

Kudos Georgia