The structure for running a Limited company is set out in its Memorandum and Articles of Association as registered at Companies House. However in a small privately owned company this does not give the owner necessary protection and appropriately document the relationship between shareholders.
It is vital that the shareholders in a business prepare a Shareholders Agreement which documents what happens if :
- A shareholder wants to leave, how the relationship is terminated, how the assets are valued and whether the shares remain with the shareholder or whether they are required to return to the company
- Similarly if a shareholder dies what happens to his shares, how they are valued and whether they are passed to his beneficiaries or whether they are required to come back into the company
- What happens if there is an arms length transfer of shares or an offer for the company
- On a day to day basis, how the business is run and what decisions need to be unanimous and what can be left to individual shareholders
Our business services team have prepared Shareholder Agreements for all sizes of companies and we understand that all companies are not the same.
We offer you a free initial meeting to discuss the areas of importance for your company and supply you with a checklist identifying those topics which shareholders should discuss and agree on at the time of forming a business.
In many circumstances we can offer you a fixed fee for drafting a Shareholder’s Agreement and putting in place protections you need.