We are often asked what a shareholder agreement is, why instructing a shareholder agreement solicitor would be helpful and / or how it protects shareholder interests.
So, what is a shareholder agreement?
- a shareholder agreement is an agreement that sets out the parameters of shareholders investment into a company;
- a shareholder agreement will set out shareholder’s rights and obligation and it should govern the management, day to day, of a company;
- a carefully drafted shareholder agreement should include clauses that seek to protect shareholders by allowing company directors the day to day power of running the company within the context of decisions that only shareholders can action through unanimous or at least majority voting;
- the other main focus of a shareholders agreement should always set out shareholders may enter and leave the business, specifically a shareholders agreement should always state how shares can be bought and sold;
- other keys clauses include
- how shares are to be valued;
- how property and assets are to be held;
- how often and in what quantity dividends are to be paid.
Put simply, a shareholders agreement, if correctly drafted, should include clauses which wholly and accurately reflect the shareholders most important considerations, whatever they may be.
Francis Wilks & Jones is a leading firm which deals with shareholder and company director concerns. We are experts in what we do. Our knowledge of company law in general and shareholder agreements is truly first rate and the results we obtain for our clients is excellent. Whatever your shareholder related enquiry, we can certainly assist. Call now for a friendly consultation on your bespoke shareholder agreement.