NeatHouse Partners
Shareholder Agreements
We help businesses of all sizes draw up shareholder agreements that are tailored to the needs of the company.
- Creating, reviewing and amending shareholders' agreements
- Rights and responsibilities of shareholders
- Dividend payment schedules
- Dispute resolution mechanisms
- Transfer of shares policies
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does your business need a shareholders' agreement?
Having a shareholders’ agreement in place can help protect your business and its owners, both current and future ones. It can clarify the roles, rights and responsibilities of all shareholders involved, making sure everyone is on the same page.
It also ensures that the company’s assets are used only for legitimate purposes and it provides an efficient dispute resolution procedure.
At Neathouse Partners, we understand that each business has its own set of needs, and our experienced lawyers will help you craft a shareholders’ agreement that is tailored to your specific requirements. If you already have an existing agreement in place, we can review it and make any necessary amendments.
shareholders agreement checklist
If you’re considering having a shareholders’ agreement, there are several things you should include. Some of them are:
• The roles and duties of each shareholder
• Voting procedures for decisions
• Assignment and transfer of shares
• Dividend payment schedules
• Company borrowing restrictions
• Handling of intellectual property
• Dispute resolution mechanism
• Deadlock provisions
• Restrictions on competition or solicitation of other shareholders
• Duties and obligations in case of the dissolution of the company
We're Here to help
Having a shareholders’ agreement in place is an important decision. Our experienced employment law specialists are here to help you make sure all the necessary elements are included and that your agreement covers all of your company’s needs. Contact us today for more information about our services.
benefits of having a shareholders' agreement
Having a shareholders’ agreement in place has many benefits for your business. It can:
• Provide clarity on the roles and responsibilities of all shareholders
• Establish decision-making procedures to prevent deadlocks
• Set out restrictions on competition or solicitation of other shareholders
• Clarify how intellectual property should be handled by the company
• Provide a plan for the transfer of shares in case there is an exit or death of a shareholder
• Determine dividend payment schedules and other financial matters
• Set out dispute resolution mechanisms which can be used to quickly resolve any issues that may arise between shareholders
• Create confidence among current and future shareholders by providing a clear and comprehensive agreement
• Offer protection to all parties involved, including creditors.
get help drawing up contracts for your shareholders
Whether you are in the process of forming a new business or already have one up and running, Neathouse Partners can help you create customised shareholder contracts that meet all your needs. Our experienced team will guide you through the entire process and make sure your agreement is tailored to suit your specific requirements. Get in touch with us today for more information.
What is a shareholder agreement?
A shareholders’ agreement is a legally binding contract between all the owners of a business that outlines their respective rights and obligations. It typically covers areas such as voting procedures, transfer of shares, dividend payment schedules, dispute resolution mechanisms, borrowing restrictions and more.
By having this agreement in place, it helps to protect the interests of all parties involved and clarifies key points in the event of any disputes. This agreement is important for companies of all sizes, from startups to larger businesses.
types of shareholding agreement
Minority Or Equal Shareholdings Agreements
These are agreements that apply to shareholders who have equal or minority shares in the company. It outlines their rights and responsibilities, as well as any restrictions on voting power and other matters.
Majority Shareholders’ Agreements
These are agreements that apply to shareholders who own more than 50% of the company’s shares. It outlines their responsibilities, voting power and other matters related to major decisions.
Joint Venture Agreement
This is an agreement between two or more parties to set up a joint venture business. It sets out the terms of the venture, and how profits, liabilities and responsibilities should be shared between the parties.
Pre-Emptive Rights Agreement
These agreements give existing shareholders the right to buy new shares of a company before they are offered to external investors. This helps protect their ownership percentage in the business, while allowing room for new investments.
Buy/Sell Agreement
A buy/sell agreement is a contract that outlines the conditions for share transfers in case of death, disability or retirement. It also sets out any restrictions around when and how shares can be sold.
Investor Rights Agreement
This type of agreement applies to investors who have put money into a company. It defines the rights they have, such as voting power, dividend payments and other financial matters.
PLC Shareholder Agreement FAQs
A shareholders agreement is a legally binding contract between all the owners of a business which outlines their respective rights and obligations. It typically covers areas such as voting procedures, transfer of shares, dividend payment schedules, dispute resolution mechanisms, borrowing restrictions and more.
It’s important to have a shareholders agreement in place to protect the interests of all parties involved and clarify key points in the event of any disputes.
Yes, it is best practice to have a lawyer or specialist solicitor draw up your shareholder agreement. They will be able to ensure that your agreement meets legal requirements and is tailored to suit your specific needs.
An employment law specialist will also be able to advise you on any laws that may be applicable to the agreement, such as those relating to employment rights and termination clauses.
A shareholders agreement will generally stay in place until any of the parties involved wish to terminate it or make changes to it. If you have an exit clause, this can be used to set out when and how the agreement can be terminated. It is important to ensure that all parties involved agree to any changes made to the agreement.
Yes, a shareholder agreement is legally binding and enforceable in court. It is important to ensure that all parties involved fully understand the contents of the agreement before signing it.
To ensure that your shareholder agreement is legally binding, it’s important to have it reviewed by a lawyer or specialist solicitor before signing off on it. This will help to protect the interests of all parties involved and ensure that the agreement is enforceable in court if needed.
If you have any further questions or need help writing a shareholder agreement, please contact us for more information. We are happy to provide advice and assistance with this process.
Yes, it is advisable to have a shareholders agreement in place to protect the interests of all parties involved. It will help to set out clear guidelines for voting procedures, transfer of shares and other matters related to running the business. Having an agreement in place will also ensure that disputes can be easily resolved if they arise.
It is important to make sure that everyone involved understands the contents of the agreement before signing it, and to have it reviewed by a lawyer or specialist solicitor. This will help to ensure that your agreement is legally binding and enforceable in court.
Yes, a shareholders agreement can be changed if all parties agree to the changes. It is important to ensure that any changes made are in line with relevant laws, as well as the interests of all parties involved. It is best practice to have any changes reviewed by a lawyer or specialist solicitor before they are signed off on.
If you need help making changes to your shareholder agreement or want more information about drafting an agreement, please contact us for more information. We are happy to provide advice and assistance with this process.
Yes, you can write your own shareholder agreement if you understand the legal requirements and have a good understanding of how the business will be run. However, it is best practice to have a lawyer or specialist solicitor review the agreement before signing off on it. They will be able to ensure that your agreement meets all legal requirements and is tailored to suit your specific needs.
If you need help writing a shareholder agreement or want more information about the process, please contact us for more information. We are happy to provide advice and assistance with this process.