COVID-19 Update - Click for more

Partnership and shareholder agreements

Many people go into business with friends, family or even strangers without making provision for what happens if it all goes wrong e.g. the business needs additional funding, or you disagree on some fundamental issues or somebody wants to leave, or can’t carry on working due to illness.

If you haven’t got something in place to cover these eventualities it can be very costly and time consuming for the directors and ultimately the business may well suffer.

So having a properly drawn up partnership or shareholders’ agreement and articles of association can cover all these unforeseen events. They commonly will include provisions for:

  • Protecting minority shareholders
  • Share transfer triggers and procedures
  • How shares should be valued and paid for
  • How to break any deadlock
  • Appointments of directors
  • Issues of new shares
  • Capital investment
  • Dividends

If you don’t have such an agreement then it is much more likely that you would end up in court and the business may have to be wound up.

We can also advise on putting key man and share protection insurances in place.

Latest Blog

B2B COVID contracts

COVID-19 Contracts
The disruption caused by the pandemic is putting a strain on many businesses, which will need to consider how their businesses and contracts work now and in the future. Some of the matters which need...
Reintroduction of employment tribunal fees?

In a surprising announcement, the Ministry of Justice (MOJ) has confirmed that it may reintroduce fees for employment tribunal claims.  This would be a surprising U-turn by the government which was criticised for its tribunal fee structure which was introduced in 2013.  The fee structure was decl

Inheritance tax changes

The recent Budget saw the Chancellor announce reforms to Inheritance Tax rules which were widely expected following the Conservative Party’s General Election victory.  Currently, a married couple are able to access allowances of £325,000 each, which can be doubled up and applied as a single allow

Grandmother with Grandchild

The Prime Minister David Cameron has recently suggested that he would be “happy” to look at plans for so called “granny leave” giving working grandparents the right to take up to 18 weeks of shared paren