Shareholder agreements
A shareholders’ agreement is one of the most important legal documents a privately owned company can have and is essential for small businesses. It is a private contract between all or some of the shareholders in a business. It can deal with all aspects of the relationship between the parties if required, including the personal rights and obligations of shareholders (e.g. how they will exercise their voting rights). Shareholder agreements provide a method for defining the powers of the shareholders as well as the procedures and limits under which the company will operate. It also provides an important tool for the smooth running of the company and for resolving any shareholder disputes that do arise and preventing the personal circumstances of one shareholder adversely affecting the company or other shareholders. Without a shareholders’ agreement there is much more potential for disagreement between the shareholders, particularly if things start to go wrong in the business. Cousins Business Law will draft a shareholder agreement to reflect the wishes of you and your shareholders, providing a useful management tool as well as a measure of protection against future shareholder disputes. Call 0845 003 5639 to find out whether you need a shareholder agreement. Read more: Why have a shareholders’ agreement?
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