Get in touch today
Call us on 07855 849232 or
email david.gordon@dg-law.co.uk
A shareholders agreement regulates the way a company is run. It regulates the way directors conduct themselves and helps shareholders understand their rights and options available. If the owners of a company have a dispute, the shareholders agreement might settle the disagreement before it escalates.
The running of a business is the responsibility of the board of directors. But not all decisions need to be left in the hands of the directors. Some decisions can be made with the shareholders input or/and vote. Without a legal agreement, imagine what kind of pressures and even dangers the company would face. This could impact negatively on the business.
If a company has a number of directors who’ve invested in the business, they can collect dividends. If they are owners of the business, they have to get that fact in writing. The document will have to stipulate exactly what percentage of the profit is due to each shareholder. In turn, a shareholder will have the right to either sell or transfer shares.
After making decisions about who can buy or sell shares, there needs to be clarity on what is acceptable, when selling or transferring shares. For instance, the directors may decide that they will extend the company’s profitability to the employees. In other words, employees can buy, sell and transfer shares. The shareholder agreement will dictate the conditions an employee needs to meet in order to be eligible to buy shares.
Suppose one of the directors wants to exit the business. The shareholders agreement will stipulate rules and restrictions, so the one exiting doesn’t impact negatively on the business. The agreement will bring protection and stability to the business. If you are thinking of drafting a shareholders agreement, please give us a call and we’ll offer an initial consultation with no obligation. SG
Call us now on 07855 849232 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.
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
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