Protect your business and avoid costly disputes with this essential downloadable guide. This Shareholders Agreement pack outlines what powers shareholders retain, how shareholdings are managed, and includes a clear, easy-to-use template. Unlike Articles of Association, this private agreement is tailored to the needs of signing parties and is crucial in times of shareholder conflict. Created with foresight to prevent future issues, this “business prenuptial” can save time, money, and stress.
Overview:
A shareholder agreement deals with two very distinct areas:
- What power do the shareholders wish to retain for themselves, i.e. not delegate to the directors?
- How shareholders will deal with their own shareholding
Shareholder agreements are unlike Articles of Association, which are the rules laid down by the shareholders as to how they will allow directors to run their business. Articles of Association are also in the public domain at Companies House and bind all directors and shareholders.
The shareholder’s agreement is a private document that only binds the parties that sign it (unless you have a Deed of Adherence). Shareholder agreements are essential in times of shareholder upset; they can save time, money and upset, as they lay out clearly how shareholder issues will be dealt with.
Sadly, these prenuptial-type documents are not often put in place before the shareholders approach the divorce court, yet with foresight and good planning, such documents can be put in place to ensure the shareholders avoid expensive and distracting costs and time by providing contractual processes for disputes.
Whilst we are comfortable with this template, you may want to get legal advice before completion to assist with any local nuances related to your specific position.
