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Shareholder Agreements

ollowing on from our recent article about ‘articles of association’ we thought it would make sense to follow this up with a short post concerning Shareholder Agreements

Shareholder Agreements regulate the relationship between shareholders, the company and its directors,  imposing duties and where appropriate any restrictions. Shareholder Agreements provide clarity and therefore it is always wise to have a shareholder agreement in place.

Whilst the Companies Act 2006 provides some protection to shareholders it is limited and the outcome can be unpredictable.

You should consider a shareholders agreement if there are 2 or more shareholders, if you are setting up a new business with others, acquiring shares in a business and selling shares but retaining a shareholding.

Shareholder agreements can regulate a number of scenarios, for example if a shareholder dies, if there is a fall out between shareholders, what happens if a shareholder wishes to sell their shares and what happens if a majority shareholders wishes to sell shares but a minority shareholder does not.

Shareholder Agreements provide clarity and give protection to shareholders. We can provide you with specialist advice and draft your agreement for you and also advise you if you are already in dispute with another shareholder.

For further assistance or to chat to us about your company or business please get in touch with Danielle Knee