If you’re starting a company, even if it is with people you know and trust then it is always a good idea to have a Shareholders’ Agreement.
There are a number of advantages to a Shareholders’ Agreement, including and not limited to the following:
- It is a private document that governs and defines the role between the different shareholders (owners) of the company. The Agreement is personal to the shareholders of the company and therefore not open to public inspection, in comparison to other company documents such as a company’s Articles of Association and Memorandum, which are free to inspect at Companies House.
- A Shareholders’ Agreement also allows a greater degree of precision and flexibility to be incorporated into the relationship between the shareholders that can cover in more detail the procedures and practices that occur on a day to day basis within the business.
Examples of such include defining key roles and responsibilities, the rights of minority shareholders and the dispute resolution procedures involved in the event of any disagreement between the shareholders of the company.
To find out more and request any additional information or if would like to see somebody to discuss matters further and in confidence then please feel free to contact either Martin Addrison at our Stevenage office on 01438 346000, or Levent Hasan at our Kempston office on 01234 858000 who will both be happy to assist you further.