Shareholders’ Agreement Solicitors

Many companies find that the relationship between their Shareholders, as set out by company law, and by standard Articles of Association to be unsuitable or inadequate for how the Company is intended to be run. By choosing to enter into a Shareholders’ Agreement, it is possible to establish a unique set of obligations that bind the Shareholders to each other and to the Company. These will deal with how you intend the company to be run i.e., decision making by officers and those matters requiring votes by the members such as dividend policy and remuneration.

A Shareholders’ Agreement Is often essential in order to protect the interests of the minority shareholders by ensuring that certain decisions require a majority or unanimity in order for such decisions to be implemented. On the other hand, Shareholders’ Agreements can also be beneficial to majority shareholders; particularly concerning the conditions as to whom shares can be transferred and the terms on which such a transfer can take place.

A Shareholders’ Agreement can provide for many eventualities, some of which you might not have even considered when forming the Company. This may cover a situation where a shareholder wishes to sell their shares, a Company wishing to issue new shares, transferring shares, and also set out key shareholders rights and obligations such as restrictive covenants and compulsory transfers of shares. Even if you are fortunate enough to not need to rely on its terms, in the event that a dispute does arise within your company, then it is likely that a Shareholders Agreement will assist in avoiding, or at least reducing the cost of, any litigation which might otherwise result. A companies Articles of Association should also mirror the Shareholders Agreement to avoid any conflict and therefore a holistic approach and In-depth corporate knowledge is critical.

O’Donnell Solicitors has widespread experience in this area and are happy to advise you; whether you are considering having an Agreement drawn up, or if you are seeking advice in relation to a dispute arising from an existing Agreement

Providing straight-talking advice, our commercial team of solicitors Is well-placed to advise clients and oversee putting a Shareholders’ Agreement in place. Contact us today for advice tailored to your business needs.