What is a Shareholders’ Agreement/do I need One?

25th October 2011
What is a Shareholders’ Agreement/do I need One? image

What is a Shareholders’ Agreement and do I need on

What is a Shareholders’ Agreement?

A Shareholders’ Agreement is an agreement between the shareholders (members) of a company with the intention of helping the smooth running of a company and to prevent disputes between the shareholders about the management of the company.  Shareholders’ Agreements will often seek to protect the shareholders’ interests in the company, establish and record an agreed relationship between the shareholders and record the shareholders’ intentions for the company.

There are usually a number of key provisions in the Shareholders’ Agreement which often include the following:-

  1. Sale of Shares

The Shareholders’ Agreement will regulate the sale of shares in the company, including provision as to how to value the shares and for preventing the shares being sold to undesirable third parties.

  1. Veto Rights

The Shareholders’ Agreement will often protect the minority shareholders (who hold less than 50% of the shares in the company), giving them more input in fundamental decisions.

  1. Protecting the Company

The shareholders will agree, if they sell their shares, to protect the company by not setting up rival businesses within a defined area for a period of time and by not poaching staff, customers or interfering with suppliers for a period of time.  The shareholders usually also agree to abide by duties of confidentiality.

  1. The Business of the Company

The shareholders will agree the scope of the business that the company can carry on, determine the business plan and select the directors etc.

  1. The Financing of the Company

The shareholders will agree how the company is to be financed, including provisions on the control of the company’s bank accounts and the preparation of management accounts and reports for the shareholders.

If you need further advice about a Shareholders’ Agreement then please contact Daven Naghen on 01775 722261, daven.naghen@maplessolicitors.com or at 23 New Road, Spalding, Lincolnshire PE11 1DH or Gemma Mayer on 01775 722261, gemma.mayer@maplessolicitors.com or 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- jane.mawer@maplessolicitors.com
Jamie Dobbs- jamie.dobbs@maplessolicitors.com
Faye Blair- faye.blair@maplessolcitors.com

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.