Shareholder Agreements for your Business
What is a shareholders agreement?
A Shareholder Agreement is a vital legal document that outlines the rights, responsibilities, and obligations of shareholders in a company. Whether you’re launching a start-up or managing an established business, having a well-drafted shareholder agreement can prevent disputes and ensure the smooth operation of your company.
Why do we need a shareholders agreement?
It is unlikely that you will enter into business with someone who you don’t like, know or trust, however loyalty and friendships are not always a solid foundation for long-term business success.
Without a shareholder agreement, key issues—such as what happens if a shareholder wants to leave, dies, or falls out with others—can lead to costly disputes or legal battles.
Here are a few reasons to put one in place:
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Protect minority shareholders
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Prevent and manage disputes
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Define how shares can be sold or transferred
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Set out clear exit strategies
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Clarify decision-making and voting rights
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Ensure business continuity
What Should a Shareholder Agreement Include?
Every agreement should be tailored to the specific business, but commonly includes:
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Ownership structure – Who owns what percentage of the company.
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Roles and responsibilities – What is expected of each shareholder.
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Dividend policies – When and how profits will be distributed.
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Voting rights – How decisions are made and what requires unanimous consent.
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Share transfers and exits – Rules around selling or transferring shares.
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Dispute resolution – Processes for handling disagreements.
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Deadlock provisions – Solutions when shareholders can’t agree.
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Non-compete clauses – To protect the business if someone leaves.
We check the small print, so you don’t have to!
Benefits of seeking professional advice
Contacting us and investing in a shareholder agreement will save you time, money and stress in the future.
Why you Agreement should be tailored
We ensure your shareholder agreement is specifically drafted to suit your business and shareholder’s needs, and supporting long-term goals. Generic templates don’t reflect your company’s unique structure, goals, or shareholder dynamics. What works for one business may be completely unsuitable for another.
Clarity and Risk Management
Professional advice helps prevent disputes by using precise language, addressing potential issues (like exits, deadlocks, or disagreements), and ensuring compliance with company law. Vague or poorly worded clauses can lead to misunderstandings between shareholders, resulting in costly disagreements or even litigation down the line.
Confidence for all parties
Using a template may make it feel like you’ve covered your legal bases—but without proper legal advice, critical risks often go unnoticed until it’s too late. A professionally prepared agreement gives peace of mind to all shareholders and investors, giving confidence that they are all protected for the future.