Shareholder Agreements – have you updated?
It is essential for all companies with more than one shareholder ensure that they have an up to date Shareholder Agreement in place that reflects the needs of the business as well as any recent statutory changes.
The Agreement is the contract between the company and its shareholders and regulates the relationship between them, reflecting shareholder investment, voting powers and governance and exit strategy amongst other matters.
Making sure that you have an appropriate agreement in place and that it is reviewed at least once a year is essential for any company to progress and prosper, no matter what size.
Disputes and deadlock positions can also be hopefully avoided and an appropriate agreement should provide certainty and dispute avoidance. Without this, a company can seriously suffer financially when a stalemate position between shareholders arises.
Advice on Life Cover and share options should also be considered so as to protect next of kin and the assets of the company. We can provide not only help with your Shareholder Agreement and articles of association but also assist with putting together a “company will” for shareholders.
For advice please contact Michael Sandys at firstname.lastname@example.org or on 0151 242 5995.