A shareholder’s agreement is a private contract that deals with how the company should be run by the shareholders. It covers:
- setting up the business together;
- operating it together; and
- what happens if one party wants to leave or there is a dispute.
The shareholders agreement governs the relationship between the shareholders. You cannot rely on the law to imply solutions here and you need a shareholders agreement to do it for you.
Whether you are a The shareholder’s agreement can provide for what should happen in the event of a dispute, deal with pre-emption rights should one shareholder decide that they wish to sell and can save money should disputes arise in the future.
Shareholder Agreement Lawyers
Having a good shareholders agreement is critical if you have more than one shareholder owning the company. Without it, you could well end up in a real pickle. To fix the problem later when you already have a shareholders dispute will cost both time and money.
Better to get a great agreement in place from the outset. Regard it as a means of protecting the value of your investment in the company, as that is truly what it is. Our team have run jointly-owned companies themselves and so know the value in having a great agreement, and the pitfalls to be avoided.
Related Reading – Our Shareholder Agreement Guide
If you want to get really in depth and understand all the legal aspects of a shareholder agreement read our guide.
It covers in greater detail what goes into the agreement; what the mechanics are in terms of putting the agreement in place; as well as how you go about enforcing a shareholder agreement should taht become necessary.
