Shareholder Agreements

As part of our comprehensive services, we offer to draft shareholder agreements under English law. This service is specifically designed for companies and businesses that have shareholders as part of their ownership structure. Our team of experienced and highly skilled solicitors have a deep understanding of the legal framework surrounding shareholder agreements and are well-equipped to provide tailored solutions to meet the specific needs of our clients.

Advantages

A shareholder agreement is a legally binding contract between the shareholders of a company that outlines their rights, obligations, and responsibilities towards each other and the company. It sets out the rules and regulations that govern the relationship between the shareholders and the company. A well-drafted shareholder agreement is essential for the smooth functioning of a business and can help prevent conflicts and disputes among shareholders in the future.

One of the key benefits of having a shareholder agreement is that it provides clarity on the roles and responsibilities of each shareholder. This can help avoid any misunderstandings or disagreements in the future. We ensure that the roles and responsibilities of each shareholder are clearly defined in the agreement, taking into consideration the specific nature of the business and its ownership structure.

We also include provisions in the shareholder agreement that address issues related to share transfers, dividend payments, and decision-making processes. These are crucial aspects of a company’s functioning and can have a significant impact on the shareholders’ relationship.

Legal Framework

In addition to these key aspects, we keep ourselves updated with the latest legislation related to shareholder agreements, such as the Companies Act 2006. This act lays down the legal requirements for drafting a shareholder agreement and any changes to it must be in compliance with this legislation.

Our team also takes into consideration the case law relevant to shareholder agreements – both old and new. For instance, the case of Hickman v Kent or Romney Marsh Sheep-Breeders’ Association (1915) is a landmark case that established the principle of majority rule in shareholder decision-making. Latterly, there have been several cases testing the boundaries of directors’ responsibilities in the context of derivative claims. We offer a bespoke, efficient and cost-effective service that is tailored to your business needs. Contact us today for a free initial consultation.

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