Join a community, not a client list.
Boutique London Lawyer
Get in touch today
Call us on 07855 849232 or
email david.gordon@dg-law.co.uk
Updating Your Company’s Shareholders Agreement
Shareholders Agreement New Terms
Beware of changes to a shareholders agreement based on a verbal understanding and a handshake. Verbally agreeing to changes does not make it legally binding. When did those changes take place and when did it all change back to the original plan? When new terms are agreed, your first step is to contact a commercial lawyer.
New Terms Verbally Agreed
How did you discuss and agree to the new terms? Over a few drinks in a bar? Well, there’s nothing wrong with that. Great business decisions come from meetings in a bar or in a restaurant over a meal. But those decisions need to be supervised by a commercial lawyer. Our recommendation is that you contact a commercial lawyer and discuss those new terms. A legal expert will assess the legal aspect of the new terms and identify any vulnerabilities or pitfalls and make recommendations. Failure to take precautions will likely leave you and your partners in a predicament that will affect the relationship and the smooth running of the business.
Shareholders Refute New Terms
Remember that the original terms of the agreement made by all shareholders were executed in writing. You must execute changes to written agreements in the same way or they will be invalid. You might accurately recall the date, location and reasons why but who, when, where and why aren’t enough to defend a case. If the new terms aren’t incorporated in writing, signed and dated, they will be deemed invalid.
After Your Initial Consultation
Your commercial lawyer will likely give you some home work, which will be a combination of talking matters over with the other shareholders and thinking about what you want changed and how. You’ll need to think about what aspects of the agreement will remain and overall what will govern the new document. So basically, you’ll need to think about the new terms and how they’ll impact the business. After consulting with the other shareholders, you’ll then go ahead and instruct your commercial lawyer to make changes and forge a new shareholders agreement with new terms. SG
Make An Enquiry
Call us now on 07855 849232 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.
Share Article With:
Make An Enquiry
Blog Categories
Client Reviews
DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to
DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome
We were very pleased with the way that DG Law helped us on our transaction
DG Law resolved a difficult lease renewal for us and their services were excellent –
I needed understanding and experienced legal advice. DG Law provided an excellent service at a
My experience was second to none – the service was professional and personal. DG Law
DG Law always step up to the plate on our transactions and handle the various
DG Law was recommended to me and my partner and I received excellent advice –
Having worked with DG Law a number/couple of times now, I have been really impressed
DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting
DG Law came recommended to me and whilst setting up a new business it was
We were recommended three lawyers to handle the sale of our seven year old successful
Why Choose Us?
We live by our core values of transparency, flexibility and being honourable – every day
We put ourselves in your shoes so we understand your problems from the inside out
We deliver our advice in a way that is easy to understand