A Shareholders Agreement is an agreement between the shareholders of a company. Its aim is to protect the shareholders’ investment in the company and to create a fair relationship between the shareholders. It outlines how the business should be operated and each shareholders’ rights and obligations.
If you run a small or medium sized limited company or if more than one person holds shares in the company or you’re a minority shareholder in a company, then a Shareholders Agreement is essential and will give you peace of mind.
Our Commercial Team in Eastbourne, Brighton, Uckfield and Notting Hill will work alongside you and your shareholders to ensure that your agreement covers all the provisions that need to be included and the contents are suited to the company’s Articles of Association.
Unlike Articles of Association, however, a Shareholders Agreement is only binding between the shareholders who are a party to it. It does not bind any future shareholders.
Typical areas an agreement will cover include:
- The type of activities the company will undertake
- The consequences of a shareholder’s death, bankruptcy or loss of capacity
- The sale of a shareholder’s shares and who they can sell them to.
- The issue of additional shares in the company.
- The issues that require the consent of shareholders.
Shareholders Agreements also provide protection for minority shareholders, giving them scope to influence decisions that are often taken by majority shareholders. Agreements can protect a minority shareholder when it comes to buying or selling the business, the appointment or removal of directors or buying or selling company property.
Agreements can also address the impact of the death of a shareholder and what happens to the deceased’s shares.
Our Shareholders Agreements start from £795 + VAT.
Contact Hamed Ovaisi for more information.
To guide you through the process, please complete the following Shareholders’ Agreement Questionnaire:
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