Protecting your business and investments
A key investment for any business where there is more than one shareholder should be a shareholders’ agreement. Whether you have two shareholders or twenty, this type of agreement should always be in place.
An appropriately drafted shareholders’ agreement will take into consideration the articles of association of the company to regulate the relationship between the shareholders, manage the company and own shares.
At Nelsons, our team of corporate solicitors in Derby, Leicester and Nottingham have vast experience in advising owners and shareholders regarding these agreements and understand the importance of protecting shareholder interests.
Contact us todayHow we can help with shareholder agreements
Our highly regarded Corporate team advise businesses of all sizes across the country regarding shareholders agreements. Our solicitors have the skills and experience to know what is reasonable in your circumstances and what goals are likely to be achievable.
When drafting a shareholder agreement, we will consider whether the following should be included:
- Who does what – it is important to specify the shareholders roles and time commitments.
- Managing the compulsory transfer of shares – e.g., where a shareholder is an employee and they are dismissed, a bad leaver clause will deal with what happens with their shares.
- Drag along rights – a clause which prevents minority shareholders from blocking the sale of a business where the majority want to sell.
- Strengthen the rights of minority shareholders – there can be various areas of risk for minority shareholders if basic rights are not enhanced.
- Good leaver and bad leaver provisions
- Policy on paying dividends from profits
- Controlling dilution
- How disputes between shareholders and/or a dispute with directors are dealt with
- Restrictions and limitations on directors
- What happens to shares on the death, incapacity, criminal liability or bankruptcy of a shareholder
As part of the comprehensive service we provide, we draft and review business documents to reflect the plans you have which may take the form of some or all of the following:
- Bespoke articles of association
- Business succession plans
- Employee share scheme/option agreements
- Cross option agreements (linked to life policies) with associated trust arrangements
Why choose Nelsons to draft your shareholder agreement?
Our team can provide legal advice throughout the lifespan of a company and can advise businesses operating in a variety of industry sectors ranging from property to creative industries, retail to healthcare.- With a careful eye for detail, strategic thinking and a proactive approach, our solicitors are valuable allies in any corporate environment, with a focus on building long-lasting relationships that work. For us, that means understanding your business and vision, your people, and your individual challenges to provide a bespoke service. For you, it means obtaining sound legal advice with innovative solutions and excellent client care.
- Our team is recognised by the independently researched publications, Chambers and Partners and The Legal 500, as one of the top teams of specialists in the country.
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Contact our Corporate team today
If you need advice or guidance regarding the creation of a shareholder agreement, contact our team of corporate lawyers today via our online enquiry form or call 0800 024 1976 for a guaranteed response.