Shareholder Agreements

It’s important to have written agreements before starting any joint project, no matter how casual the relationship. A written shareholders’ agreement is a way for those who have a stake in a business to agree terms between them to control how a company is to run.

Why is a shareholders’ agreement important?

A shareholders’ agreement is important as it can cover many issues not dealt with by the Memorandum of Incorporation of the company, or company legislation itself. Where there is no agreement in place for your company, shareholders are typically treated equally and share dealings are governed by legal rules that may not necessarily take into account the aims of the founders of the business.

tidman-icon-blue

How can we help you

Many provisions within a shareholders’ agreement operate as voting agreements – the parties bind themselves to exercise their votes as shareholders to put into effect their agreed intentions as to how the business will be funded, run and developed. For example, issues include:

  • Activities the company will carry on, and its intended rate of growth
  • The intended exit route and timescale for achieving it
  • How share capital can be issued and shares transferred
  • How business decisions are to be made
  • How profits should be shared
  • What happens if a third party, such as an investor, wants to buy into the business

To speak with one of our expert business solicitors, contact us by calling 0131 478 4724, or complete our online enquiry form to request a call back.

Arrange a meeting

If you are looking for expert advice for your business, speak to one of our expert business solicitors today. Call us on 0131 478 4724, or complete our online enquiry form and a member of the team will get back to you.

Latest NewsFrom the blog

trademark
  • Christmas shopping scams

6 easy tips to avoid Christmas shopping scams this year

December 5th, 2023|Comments Off on 6 easy tips to avoid Christmas shopping scams this year

6 easy tips to avoid Christmas shopping scams this year This might be the season for giving, but don't give scammers an early present by getting caught out by a Christmas [...]

  • UK-US Data Bridge

UK-US ‘data bridge’ to take effect on 12 October

September 29th, 2023|Comments Off on UK-US ‘data bridge’ to take effect on 12 October

UK-US 'data bridge' to take effect on 12 October The UK has now agreed to an extension for the transfer of personal data from the UK to the US, known as [...]

  • inventor

New Year’s Resolutions To Help Make You A Better Inventor

January 18th, 2022|Comments Off on New Year’s Resolutions To Help Make You A Better Inventor

New Year’s Resolutions To Help Make You A Better Inventor Here are 7 inventing resolutions to take into the New Year to help you become a better inventor. For further information [...]

Business
SERVICES

Copyright
SERVICES

Trademarks
SERVICES

Design Rights
SERVICES

Patent
SERVICES

IP Audit
SERVICES