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.


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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Testimonials

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"

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

"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 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.