The importance if a well drafted shareholder or partnership agreement in any business cannot be underestimated. It will provide clarity for all concerned and help avoid potentially damaging and expensive disputes if the shareholders or partners later fall out. Our expert team can provide the bespoke agreement your business needs. Let us help get your business on a sound legal footing.
We cannot overestimate the importance of a well drafted shareholder agreement when it comes to the smooth running of a company and the ability to protect a shareholder’s position.
Whilst there are general rights and remedies available to shareholders in the absence of a shareholder agreement, everything is made much easier with a properly drafted shareholder agreement in place. A properly drafted agreement can help save huge amounts of time and legal costs in the event of a later dispute.
Our team can help draft a shareholder agreement to cover off the following key areas which often form the basis for shareholder disputes:
- how the business is run.
- the roles and responsibilities of shareholders, management and directors.
- corporate governance issues and the removal of directors by shareholders.
- clarity on profit shares between shareholders.
- clarity on remuneration of directors and payment of dividends to shareholders.
- the mechanism for dealing with new shareholders.
- vitally important, how to resolve disputes within the company and/or between shareholders.
- how to ensure a fair sale of shares, a proper valuation of shares and a structured mechanism to exit the company.
- share classifications and voting rights.
- non-competition clauses to stop people leaving and setting up a rival business.
- making sure the terms of departure are properly laid out.
In addition to this, our expert team can also help you with regard to amendments to existing shareholder agreements and/or updating shareholder agreements in the event that shareholders may have left or new shareholders need to be introduced into the business.
At Francis Wilks & Jones we cannot manage all risks that you and your business may face, but we are very experienced in the most common problems arising, how to protect against them and how to resolve them before matters escalate to court proceedings or business failure.
“Supportive and friendly with partner-led involvement, I would recommend Francis Wilks & Jones to anyone facing a similar situation.”
A shareholder who turned to us after discovering that his co-shareholder was profiting well from their business while he was being paid a pittance. We helped him find a way out of the business by selling his shares