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Business Contracts - Shareholders Agreement

Being prepared for the unexpected

If your company has more than one owner, you need a Shareholders’ Agreement. This agreement, which is made between the owners of a company, sets out the many aspects of the shareholders’ responsibilities. It includes details as to how the business will be run, who is responsible for the decision making and what will happen if one or more shareholders want to leave the business.


It’s no secret that where money is concerned, even the best of friends can fall out. By agreeing ownership and management structures from the outset you can protect yourself, and your shareholders, from irreparable disagreements.


When it comes to business, people like to know exactly where they stand. We advise being very thorough, and when we draft a Shareholders’ Agreement we would ask you to consider and discuss the following points:

  • Control of the company and voting rights relating to decision making
  • Capitalisation and the business plan
  • Further capital and dilution
  • Accountability
  • Risk allocation
  • Profit allocation
  • External work and conflicts of interest
  • Dispute resolution
  • Exit strategy for shareholders that transfer their shares
  • Insolvency
  • Transfer of provisions
  • Restrictive covenants
  • Mandatory transfer of shares
  • Management provisions
  • Confidentiality and intellectual property rights


We would be happy to advise on any of the above, and will be able to set out documents that you can rely on to keep the relationships between shareholders amicable going forward.

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