You’re running a company with your trusted friends/colleagues and you’re probably worried you haven’t got anything in writing to seal that trust – a shareholders agreement. As a shrewd business owner you’d want to ensure that your company runs smoothly, with the power of vote exercised against every executive decision. Do you think that a handshake among friends should suffice? Think again! You must have a shareholders agreement in place to protect your rights.
A partnership can only run smoothly and successfully with a shareholders agreement among trusted friends, with the seal of approval from a corporate lawyer. No doubt you’ve seen the need to decide, for instance, how disputes should be settled, decide to have a means by which no conflicts will surface, and also know exactly the value of the company and the value of your own slice of the cake, thus maximising the value of your business investments.
Consider for instance, if in future someone decides to leave the company, conflicts will surface and will not be resolved with a simple handshake – you can shake hands when agreeing on a partnership, but parting companies isn’t as easy as a handshake. Even if you have in place a document that covers many aspects of a shareholders agreement, it is highly recommended that you instruct a corporate lawyer to review it and insert overlooked and yet essential key points. For instance, without a non-compete clause in a shareholders agreement, the leaver can effectively and lawfully take the business with them.
Every shrewd business owner stretches the investment and profits of their business with a shareholders agreement in place, thus preventing conflict with the shareholders of the company. So whether you choose to leave or remain with the company, as a shareholder you can decide whether leaving with your shares or selling your shares but remaining with the company, is in the best interest of your investment. So a shareholders agreement is pivotal in order to protect your business assets as well as protect some if not all shareholders of your company. Did you know, for instance, that you can leave as a shareholder but remain with the company, or even leave the company but continue as a shareholder?
When drafting an agreement, and before it is counter-signed, be sure to know how much your shares are worth and how much it is due to you once you leave or decide to cut your share out of the cake. Your shareholders agreement needs to be clear about all finances so everyone knows what they are due.
At DG Law we will ensure that you consider all of the key aspects of your business, including:
Call us today and we can discuss how your shareholders agreement should be clear and concise, allowing the management team and decision-makers to know where they stand when faced with a complex issue, without a dispute.
We will help you ensure that your agreement is signed as a seal of approval by all shareholders and that it is kept in a safe place where it can be easily accessed. We will help you understand that a shareholders agreement is like a prenuptial agreement, setting out what the position is when the partnership is formed and what will take place without nasty surprises or disputes when the relationship dissolves. So please give us a call, your first consultation is free.
Venetia Lawson-Cruttenden [solicitor] is fantastic! She is always so thorough and efficient and gives you the
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
Thanks for all the help from DG Law in pulling together our somewhat complicated loan.
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 organised and ran a very useful session to help to make our team’s
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