What is a shareholder’s agreement?
A shareholders’ agreement is an agreement between all the shareholders of a company, it clarifies how the company is to operate. This agreement is essential as it allows a shareholder to form a relationship with the company, directors, and other shareholders. A shareholders’ agreement protects your interest in the business as it ensures that there are agreements in place to govern how the shares are held and ultimately sold and rules to ensure the shareholding and business is being managed in an agreed format.
Who should enter into a shareholder’s agreement?
Below are circumstances where you should have a shareholders’ agreement in place:
-If your business has two or more shareholders;
-If you are starting up or buying over a new business with others;
-If you are selling shares to others in your company.
You can implement a shareholders’ agreement into your business at any time regardless of how long it has been established. We recommend that these agreements are reviewed regularly to ensure that they are still relevant.
How we can help
Our commercial legal team will provide you with the best legal advice on the topic of shareholders’ agreements. We will break down any legal jargon and ensure that you understand the complete process and achieve the best legal outcome for your business. Please contact our Commercial property legal department for further advice, follow the steps below.