We provide a very comprehensive but cost-effective shareholders' agreement. Every company should have one. Get in touch and find out more.

A Shareholders Agreement is a contract made between the shareholders of a company. It governs the relationship between the shareholders, and sometimes between the shareholders and the company. Shareholders agreements are entered into voluntarily by the shareholders to provide certainty, to avoid conflict and to protect their investment in the company.

In the absence of an agreement, the relationship between the shareholders of a company is governed by applicable law and the company’s Articles of Association so the purpose of a shareholders’ agreement is to amend this “default” position.

Our Shareholders Agreement and Joint Venture Agreement package is suitable for shareholders of companies incorporated in the UK. There are no requirements as to its contents (although there are some restrictions) so we would work with you to identify relevant elements to suit you and your business. However, you may wish to consider the following provisions:

• Controlling “ownership” – imposing restrictions on the transfer of shares.
• Forced Sale – forcing a sale or purchase of shares in specified circumstances.
• Minority Rights – providing additional protection to minority shareholders.
• Board Control – regulating the appointment and removal of directors.
• Finance – regulating debt and equity finance of the company.
• Non-Compete – restricting shareholders from competing with the company.
• No Poaching – preventing shareholders from poaching customers or staff.
• Future Shareholders – allowing flexibility to introduce further shareholders.
• Business – defining the permitted scope of the company’s business.
• Dividends and Salary – setting out clear rules regarding the payment of dividends and other benefits, including salary and directors’ fees.
• Conflict resolution – mechanisms to resolve conflict between shareholders.
• Tax – if there are corporate shareholders, insert provisions regarding consortium or group relief and VAT grouping.