A shareholder agreement is essential for the running of an efficient and effective company as it can deal with the day to day management issues relating to the company, how the business of the company is to be carried on and the relationship between the shareholders.
Companies without shareholder agreements may find themselves involved in disputes when the aims and objectives of the shareholders and company begin to differ. A written shareholder agreement allows the parties involved in the company to have certainty and clarity at all times which can then help to avoid disputes. The agreement would also provide a mechanism for dealing with such disputes if they do arise.
Issues commonly covered by a shareholder agreement are as follows:
- Board decisions that require shareholder approval
- Rules relating to the compulsory transfer of shares
- Restrictions on the transfer and issue of new shares
- Valuation of shares in particular circumstances
Joint venture arrangements between parties coming together to pursue a common business goal should also be structured and documented to ensure maximum protection for all parties, as well as allowing flexibility to develop the venture.
We can draft, revise and structure new and existing agreements for your company, tailoring them to the requirements of your particular business and circumstances. To achieve this we draw upon the wide range of experience and knowledge within our firm, ensuring that a suitable and effective agreement is drawn up.