Shareholder Agreements

When you are setting out on a new business with others - then that is the best time to write down how you plan to run your business and how you might choose to bring it to an end. Before you have any chance to disagree!

A shareholders’ agreement is a contract entered into between a company and some or all of its shareholders. It can deal with all aspects of the relationship between the parties, including the personal rights and obligations of the shareholders. Together with the company’s articles of association a shareholders’ agreement creates internal “rules” by which a company is governed.

The main reason to put a shareholders’ agreement in place early on in the lifecycle of a company is that it is generally much quicker, cheaper and easier to do so than trying to negotiate a settlement in the event that a dispute arises and no agreement is in place to determine how such dispute will be resolved.

It is important to ensure your shareholder agreements fit with the ethos of your company set up and continue to evolve as your company progresses. websters’ legal team will offer you practical advice, specific to the needs of the company and the shareholders of that company.