Shareholders Agreements

It is likely that entrepreneurs and directors of companies will need to engage with the world of company governance and finance several times over the lifecycle of the business. This is likely to require engaging with banks, venture capitalists, investment bankers, government agencies, business advisors, in addition to those participating as shareholders in a company.

Shareholders agreements are a tool for recording the interests and responsibilities of each of the participants in a company and to comply with company law requirements to ensure they are enforceable. Depending upon the purposes of a shareholders agreement, these agreements should deal with important matters such as:

contribution of finance, and the rights of investors;
establishing classes of shares and the respective rights attached to classes of shares;
initial shareholdings of the members;
assigning the powers of members to participate in the management of the company, and reserving named matters for all of the shareholders;
restrictions on transfers of shares (pre-emption rights);
voting power might be extended beyond the usual rights of shareholders to provide for participation in the management of the company. These might include power to decide declarations of dividends, election of directors, rights to consider the accounts of the company and expenses which may (and may not) be incurred with consent of all of the shareholders;
the conduct of meetings and notice requirements;
responsibilities for product development, provision of services to the company;
conduct and involvement in shareholders meetings;
time commitments required of members; and
contribution of skills and expertise.

Our company solicitors are able to assist you prepare shareholders agreements to deal with these matters appropriately.

Legal Services - Company Solicitors

Shareholders agreements do not need to be complicated and difficult to penetrate. A well-drafted shareholders agreement will be pitched to the particular circumstances of the parties and go no further in complexity than the commercial agreement reached by the individuals or companies which are looking to work together in the future. One-sided agreements are ideally avoided because as it does not serve the interests of either party if they are to work together collaboratively over the long-term.

Our company solicitors are often asked to protect the interests of minority shareholders, and to review the company's internal documentation in conjunction with shareholders agreements to ensure that the documentation matches the commercial agreement which has been reached.

Please contact our company solicitors for legal assistance.

London Business Solicitors & Lawyers

Our Solicitors in London assist businesses in the UK and internationally to create options, achieve realistic and attainable goals, and providing guidance to assist decision-making in a commercial context.

For more information, legal advice or to find out more about the legal services we provide, call 020 7353 1770 or contact us online.

Shareholders Agreements