Shareholder Agreement Solicitors in Manchester, Blackburn and Lancashire

A shareholder agreement is a contract between the shareholders of the company and regulates the rights of each of the shareholders within the business. The agreement will set out the shareholders rights and obligations, regulate the sale of shares in the company, define how important decisions are to be made and provide an element of protection for minority shareholders and the company.

To speak to one of our friendly, expert Commercial Solicitors, get in touch today by calling 01254 297130, or by using our simple enquiry form below.

What Are the Benefits of Shareholder Agreements?

A shareholder agreement is not registerable at Companies House, and as such, it has the advantage of being private. It usually contains a detailed provision on the decision making and voting process, transfer of shares, dividend policy and any other matters which the shareholders wish to regulate in a contract.

The key advantage of having a shareholder agreement is that it helps prevent complaints of unfair prejudice since the exit strategies are detailed within the contract as is the shareholder’s right to be involved in the decision-making process.

What is Covered in a Shareholder Agreement?

Shareholder agreements cover a wide variety of issues, including:

• The business of the company
• The day to day running of the company
• Shareholder dividend policies
• Appointment and removal of directors
• What happens if the shareholders fall out
• Restrictive covenants placed on shareholders
• Intellectual property
• Borrowing money
• Spending limits
• To whom shareholders can transfer their shares (and to whom they cannot)
• Issuing new shares

What Documents Are Required For a Shareholder Agreement?

The types of documents that are required to implement shareholder agreements include:

• Shareholder agreement (or investment agreement; subscription agreement or joint venture agreement)
• Articles of association
• Board minutes
• Shareholder resolutions
• Companies House forms

How Long Does It Take To Complete A Shareholder Agreement?

Once you have an idea of the points and issues you want to include in a shareholder agreement, the shareholders' agreement itself (together with the supporting documentation to implement the arrangements) can be produced in just a few days. Timing can be affected by any points and issues that need to be negotiated between the shareholders.

Contact Our Solicitors Today

If you are in the process of setting up a business and would like some expert advice on how to best set up your shareholder agreement, please contact the team here at Curtis Law Solicitors. Call our experienced team of solicitors today and discuss your requirements today; you can call us on 01254 297130 or get in touch via our simple enquiry form below, and our team will be in touch with you as soon as possible.