Shareholder Agreements

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There are many advantages in running your business as a limited company not least the degree of protection from personal liability that this affords.

It is essential that shareholders plan for the future and an agreement between them is usually a good way of doing so. Such a shareholder agreement is confidential to the shareholders and will not be shown on the company’s register at Companies House.

A shareholder agreement can usefully cover the following issues:

The areas of business that the company will undertake.
Circumstances in which further shares can be issued.
Arrangements for transfer of shares on death/retirement.
Whether there should be an obligation to offer shares to existing shareholders before selling to a third party.
Whether there should be circumstances where a shareholder is required to sell shares (for example on ceasing to be an employee of the company or on death).

Mechanism to be employed to fix the value at which shares should transfer.
Arrangements for the sale of all the shares in the company should an agreed percentage of shareholders require.
Procedural issues.
Arrangements for borrowing, lending, giving guarantees, changing company structure etc.

Taking advice early and putting a shareholder agreement in place can help provide the business with a stable platform for long term success.

For an initial discussion please contact any of our offices or send us a message using the Contact form on the right of this page and we will get back to you as soon as possible.

Shareholder Agreements

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