Shareholder Agreements
Shareholder Agreement Solicitors
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Rose & Rose
Protecting Your Business with a Shareholders’ Agreement
A shareholders’ agreement is the most useful document a business can have in place, but it is sometimes thought unnecessary or easily forgotten. Founders are usually so focused on getting the business off the ground and excited about the new venture that they put off the conversation about what happens if one of them wants out, if they fall out, or if someone wants to bring in outside investment.
It’s natural to assume that by starting a business with a family member or friend, disputes won’t arise. However, fallouts between family-run businesses or between friends do happen and are often more fraught. By the time anyone wishes an agreement existed, it is often too late to put one in place without significant goodwill on both sides.
Our business law solicitors at Rose & Rose draft, review, and negotiate shareholders’ agreements. We can also advise on a wide range of shareholders’ matters, including disputes.
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Setting Up a Shareholders’ Agreement
A shareholders’ agreement is a private contract between the shareholders of a company. It sits alongside the articles of association and addresses the practical details that the articles do not cover. Our team can help draft Shareholders’ Agreements to ensure they effectively deal with:
- Which decisions the board can make, and which need shareholder approval
- How shares can be transferred, sold or inherited
- Pre-emption rights, giving existing shareholders first refusal on new or transferred shares
- Drag-along and tag-along rights covering what happens if someone wants to sell their shares
- Good leaver and bad leaver provisions for shareholders who leave the business
- Dividend policy
- Restrictive covenants stopping a departing shareholder from setting up in competition
- How disputes between shareholders will be resolved
Reviewing an Existing Shareholders’ Agreement
If you already have a shareholders’ agreement in place, it is worth reviewing it every few years. The focus and value of your businesses can change, and the founders or shareholders may develop different objectives. The agreement that worked at the launch of your business may no longer suit your needs, especially if you have added new shareholders or directors. We regularly review agreements and update them to reflect how the business operates today.
Shareholders’ Disputes – When Things Go Wrong
If you are in a dispute with another shareholder, our Business Disputes team can advise on your options, including:
- Shareholder disputes
- Shareholder agreements
- Partnership disputes
- Breach of warranty claims, earn-out and completion account disputes following a business’s sale
- Enforcing and resisting restrictive covenants in business sale agreements and employment contracts
You can read more on our Partnership and Shareholder Dispute Solicitors.
Speak to our Business Law Team
To discuss putting a shareholders’ agreement in place, or to have an existing one reviewed, please contact us on 0208 974 7490 or info@roselegal.co.uk, and we will be happy to discuss your requirements.
Meet the team
Meet the team working for you. Click the photo to view that team members profile or use the button to send them an email.
Tom Burton Wills
Isaac Moore
Nick Roots
Mark Eaton
Robert Sadler
Christine Salama
Lein Jabeiti
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