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.

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