Shareholders Agreement

21st August 2013
Shareholders Agreement image

Shareholders Agreement

Many of us decide to set up a limited company when we go into business, there may be many reasons for choosing this type of business medium but one of the main reasons is it offers you limited personal liability.

If you have started up your company with another party however, no matter how well protected or limited your liability may be to the outside world, you may still encounter major problems in terms of both stress and finances if you later fall out with your fellow shareholders or are unable to agree on a certain point.

Even the best of friends can fall out over business and it is important to remember that just because you all start out with same plan and ambitions in mind that is not necessarily going to remain the case. Many factors can influence how a person chooses to react in their work/ business life, for example family, illness or even just a general change of heart.  The story of starting up a business with a friend and not bothering to put something as formal as a shareholders’ agreement into place and then having a difficult and protracted fallout is all too familiar.

A shareholders’ agreement is essentially a contract between the individual shareholders, it can set out what will happen if certain circumstances arise, what will happen if one of them wishes to leave the business , what share of profits each of the shareholders are entitled to etc . A shareholders’ agreement can be drafted to so that certain issues must have a majority or even unanimous vote in order to proceed.  This is beneficial as often a company has a shareholder with more than 50 % of the shares who can effectively run the company.  If this provision is included, it will protect the minority shareholders from this situation.

If you have worked for years to build up the goodwill of your company and then a key member leaves, the last thing that you would want is for them to set up in competition with your company.   A clause could be inserted into the shareholders’ agreement to prevent this and thus protect the company going forward.

A bank may insist on this type of protection (i.e. a shareholders’ agreement) before offering any funding/credit to a company.  It is such an important and fundamental document.

The shareholders can agree near enough whatever they like between themselves in a shareholders’ agreement. It is a private agreement and does not have to be lodged at Companies’ House and will not be inspected by the public.

A shareholders’ agreement may help prevent a great deal of argument and distress in the future and will ultimately be a cheaper option then taking action in the courts when the company has hit problems as a result of disagreements with the shareholders. You cannot afford to own/manage a business without a shareholders’ agreement.

If you think that a shareholders’ agreement would be beneficial to your company please call Gemma Mayer on 01775 722261 or email or write to Gemma at 23 New Road Spalding Lincolnshire PE11 1DH.

The Will Writing Company Limited image

The Will Writing Company Limited

It has been reported that The Will Writing Company Limited, whose registered office is at Ergo House, Mere Way, Ruddington Fields Business Park, Nottingham, have ceased to practise.

If you made Wills using this company then it is probably worthwhile making contact with them in order to retrieve your Wills. Once you have your Wills you may wish to make an appointment with one of the lawyers in our Wills, Lasting Power of Attorney and Probate Team in order to review your Will to ensure it still accords with your wishes. We also offer a Will storage facility which is free of charge.

To review your Will please contact one of our lawyers in the Wills, Lasting Powers of Attorney and Probate Department:-

Jane Mawer-
Jamie Dobbs-
Faye Blair-

Or telephone the office on 01775 722261 and ask to speak with one of the team.

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Gemma Mayer LLB

"I would highly recommend Maples Solicitors, especially Gemma Mayer, for any conveyancing work. The level of support and professionalism was excellent at all times. I also felt if I needed to ask or clarify anything that it was not an issue. Buying and selling a house is stressful enough, but Gemma helped me through it step by step."

Anita Toal LLB BA

"I think you are brilliant. You can use my comments above. You are efficient, friendly and quite clearly very good at what you do. Mainly you don’t leave people hanging around too long for." "So easy to talk to her and she understood what I wanted. She put me at ease and I cant thank her enough"

Daven Naghen LLB

"Daven provided an excellent service, from attending the first interview with me to the final court appearance. He filled me full of confidence that he would defend me to which he did and come out with an excellent outcome in view of my position that I had put myself in."

Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs ACILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

Mike Pepper MA

This is the second time we have used Mike Pepper at Maples Solicitors in the sale of our house. We cannot praise Mike enough for the highly efficient and professional service that he has provided us with. He is by far the best solicitor we have ever worked with, and the service that he has provided us with has gone far and beyond anything we have ever experienced. We have found the whole process to be a very relaxing experience.

Claire Smith FCILEx

Claire Smith has been amazing in every way. I highly recommend her and I am so grateful for all her help. She’s professional on all levels, reliable, extremely organised and I will be recommending her to everyone. I’m very lucky to have had her representing me and I can’t thank her enough. She is an asset to Maples. Thanks so much Claire!

Anita Zaborniak

We found it a pleasure to deal with Anita Zaborniak, she was most helpful and informative and kept us up to date with the progress of the purchase of our new home. If we were to move again we wouldn’t hesitate to use Maples again.