When setting up a business, it is always sensible to draw up a shareholders’ agreement in order to regulate the way your business is run and the relationship between the shareholders. In addition to setting out plans for your business operations, it can also be crucial when it comes to settling disputes if things go wrong.
What is a Shareholders Agreement?
Our Corporate team have assisted many clients with shareholders’ agreements. We are able to prepare agreements and Articles of Association as required.
Articles of Association are public documents that are freely available to view on the internet at Companies House. They deal with such matters as:
- Share Transfers
- Directors, Powers and Duties
- Borrowing Money
However, a Shareholders’ Agreement is a private document that can contain material which also features in the Articles. It contains details of discreet information such as the amount each shareholder will invest, voting arrangements, classes of shares held and dividend policies.
Businesses may find it easier to settle disputes if they have a shareholders’ agreement rather than relying solely on the Articles of Association. It is always preferable to have both in place in order to ensure your business continues to run smoothly.
Advice on a Shareholders Agreement
If you need assistance with a shareholders’ agreement, we are able to offer guidance throughout the process to ensure that your document is legally compliant and covers all the necessary areas.
We can provide this kind of advice for any business model, including bespoke agreements for partnerships and LLPs.
For help and assistance on queries relating to shareholder agreements, contact our Corporate team on 0161 832 6131 or get in touch by filling out one of our online enquiry forms.
Find out more on our Corporate and Commercial Law page.