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.

Dementia Friends image

Dementia Friends

Maples Solicitors are proud to announce that they have now joined to become Dementia Friends which is an Alzheimer’s Society initiative.

The private client department of Maples Solicitors prepare Wills and Lasting Powers of Attorney on a regular basis and this often involves dealing with clients who are suffering from dementia. The private client team pride themselves on spending as much time as is necessary to assist all of their clients, but those suffering from dementia often require additional assistance and time to ensure that they have fully understood the legal documentation that they are creating. The private client department are regularly complimented on the way they deal with such clients, whether this be explaining things to them in a clear and uncomplicated manner, spending time with them or putting them at ease.

It is a misconception that anyone suffering from dementia cannot make a Will or Lasting Power of Attorney. Only if someone lacks sufficient mental capacity are they unable to make such a document. It is therefore vitally important upon any diagnosis of dementia that legal advice is taken as soon as possible to make sure that your affairs are in order so that it is easier for your family to deal with your affairs if you are unable to do so yourself.

To become Dementia Friends, Maples Solicitors have pledged to develop their understanding of dementia and continue assisting clients suffering from dementia with their legal affairs in a respectful, friendly and efficient way that is not daunting making the process as easy as possible.

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Gemma Mayer LLB

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James Turner BA

James Turner was extremely helpful with our buying process. Everything went smoothly. We are very happy with the level of professionalism demonstrated by the office. Highly recommended solicitors. Will definitely do business with them again.

Daven Naghen LLB

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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 GCILEx

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

Mike Pepper gave us excellent advice. He was always most helpful and accommodating giving lucid explanations every step of the way. Thank you Mike.

Donna Sandison FCILEx

Donna has been helpful and professional every step of the way during the process. Always on hand to answer any queries and totally professional and friendly at all times.