Shareholder agreements are vital for the smooth running and
organisation of a company. At Nath Solicitors in London, we work with SMEs,
large corporations, and multinationals to draft robust shareholders’ agreements
that protect the interests of all parties involved.
Why do you need a shareholders’
agreement? The advantages
There is no legal obligation to
put a shareholders’ agreement in place. However, doing so not only ensures your
organisation will have a vehicle to resolve disputes and set out voting rights,
but it will also communicate to investors that your organisation is
well-managed.
A clear, concise shareholders’
agreement can set out:
- · the voting rights of minority shareholders
- · a procedure for resolving disputes between shareholders and director/shareholder disputes
- · the company’s dividend policy
- · the circumstances in which a shareholder may transfer shares
- · how involved shareholders can be in decision-making; for example, is their vote required to appoint or remove directors?
- · the permitted level of borrowing
- · the form of future funding
- · drag along or tag along rights
- · the right of a company to buy-back shares
- · restrictive covenants (as they apply to the directors)
This list contains only a small
number of clauses a shareholders’ agreement can contain. Our commercial
solicitors will partner with you, working to understand the complexities and
goals of your organisation. We will then draft a bespoke shareholders’
agreement that fits with your ambitions and company ethos.
Setting your
company up for success
By instructing us, you can be
confident your shareholders’ agreement will work to manage risk for directors
and protect the interests of shareholders. By having a well-thought-out
shareholders’ agreement in place, designed specifically for your organisation,
you are laying the foundations for a dynamic, properly organised company that
is attractive to investors.
For strategic, cost-effective company law
advice we are always available. You can contact ShareholderAgreement Lawyers London and call us at +44 (0) 203 670 5540.

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