At Pickering & Butters, we support businesses from inception onwards. Part of this service involves ensuring that companies have a strong legal framework in place, to include a robust shareholder agreement tailored to the unique needs of each organisation. Our goal is to provide shareholder advice that is tailored to your specific circumstances, whilst supporting you through the entire process.
Clear, comprehensive legal advice
Our corporate commercial team always works to gain a good understanding of the requirements of a business before drawing up an agreement that supports its aims and ambitions. The depth of our expertise means we can provide the help you require, however complex your needs.
Services provided by our shareholder agreement lawyers in Stafford & Rugeley include:
- Discussing your requirements and what you need from your shareholder agreement
- Drafting your corporation shareholder agreement
- Negotiating terms with solicitors for the other parties
- Arranging for the shareholder agreement to be executed
Expert advice from shareholder agreement solicitors in Stafford & Rugeley
Our shareholder agreements services
If you would like expert assistance with a shareholder agreement in Stafford & Rugeley, our team will work with you to identify the key points you need covered and draft a sound agreement tailored to your business.
Having the right shareholder agreement in place is an important step in protecting your organisation from disagreements and misunderstandings that could result in a legal dispute. Taking the time now to ensure you have a strong framework in place will give you security for the future, however your business grows.
We always ensure that our advice is clear, honest and tailored to your circumstances, so that you be sure that the shareholder agreement we provide will properly protect your interests.
Shareholder agreements – frequently asked questions
What is a shareholder agreement?
A shareholder agreement sets out the arrangements made between those with a stake in a company. It can include a range of terms and should be tailored to the unique requirements of your enterprise.
What should a shareholders’ agreement include?
It is recommended that you consult with expert shareholder agreement solicitors when deciding what to include. A well-drafted agreement will look to cover most eventualities and protect the business from difficulties that could arise from disputes. It is a private document that will not be available publicly, so you can include sensitive information if necessary.
Common clauses included in shareholders’ agreements include the following:
- The nature and aims of the business
- How decisions will be made
- Any rights of veto given to shareholders, for example, the right to veto taking on a major loan
- Rights to be included in discussions and to have a vote in specified situations, such as in the event that an acquisition or disposal is being considered
- Whether shareholders will have any say in respect of the appointment, dismissal and pay of directors
- What will happen to the shares of someone who wishes to sell or who has died. This could be offering the shares with a right of first refusal to other shareholders or requiring consent of the company directors for a sale
- Drag along and tag along provisions, requiring shareholders to join in a sale or have their shares bought along with those of other shareholders, should the business be acquired by a third party
- Confidentiality clauses
- Restrictive covenants, for example, preventing a shareholder from working with a competing business
- Details of how disputes will be resolved
Is a shareholder agreement legally binding?
Provided it has been properly executed, a shareholder agreement is a legally binding contract and can be enforced. This is a good reason to ensure that it has been drawn up by an expert, as it could one day end up before the court, where it will be examined in detail.
Once this has been done, it means that all parties will have to adhere to the provisions outlined in the document. Failure to do so will likely result in legal consequences. Having a legally binding shareholder agreement in place is essential as it helps prevent disputes as well as providing clarity of the various aspects of ownership and decision making. It also offers a framework for the resolution of potential conflicts amongst shareholders.
To ensure the agreement is tailored to your specific circumstances, it’s highly recommended to seek the expertise of experienced shareholder agreement solicitors.
Our shareholder dispute solicitors have years of expertise in this field and will be happy to answer any queries you may have.
Why do you need a shareholders’ agreement?
A shareholders’ agreement gives clarity to everyone involved in the business, so that they know what is expected of them and what rights and responsibilities they have. It can go a long way to helping avoid disputes. If a disagreement does arise, the shareholders’ agreement should set out the way in which this can be resolved.
By establishing a set of clear guidelines on share ownership, processes for making decisions, dividends distribution and dispute resolution process, an expertly drafted shareholder’s agreement ensures that all shareholders have a comprehensive understanding of their roles within the company. Additionally, this agreement can address vital matters such as share transfers and exit strategies, providing a roadmap for how shareholders are able to exit the company if required.
Our shareholder dispute solicitors are experts in drafting shareholder agreements and will be on hand to answer any queries you may have.
What are the different types of shareholders’ agreements?
Shareholder buyout agreement
A shareholder buyout agreement sets out how shares can be bought and sold. This can protect a business from having shares sold to someone that the directors would not want involved, but also give shareholders a way of exiting the company, should they wish to do so.
This type of agreement generally involves a buyback of shares by the company, directors, or other shareholders. The agreement will include related details, such as how shares will be valued.
Shareholder purchase agreement
A share purchase agreement transfers ownership of a business to a buyer, including the assets and liabilities of the company. It will set out the details of the transaction and the conditions of the sale.
It can be a lengthy and complex agreement, covering a wide range of issues to ensure that both the buyer and seller are protected as much as possible.
Silent shareholder agreements
Where shareholders will be passive investors, taking little or no part in the running of a business, the agreement will reflect this, allowing the silent shareholder to invest but requiring no input on their behalf.
Why choose Pickering & Butters for your corporation shareholder agreement in Stafford & Rugeley?
We hold the Law Society’s Lexcel accreditation in recognition of our high standards of client care, compliance, and practice management.
Our corporate and commercial team hold an exceptionally high level of expertise in their field, and we will ensure that your shareholder agreement lawyer is the best choice to advise and represent you and your company.
Strong commercial focus
As well as an in-depth understanding of company law, our solicitors have a strong commercial grounding, meaning that their advice to you will be based on the outcome you want for your business.
We are known for the strong, ongoing relationships we build with clients, getting to know their organisations in detail so that we can provide the very best guidance and representation. Part of this is due to the outstanding level of service that we provide.
For more information about our services, see our business and commercial page.
Our shareholder agreement solicitors’ fees
Shareholder agreement solicitors are committed to providing the highest quality of service as well as outstanding legal expertise. We will make sure you are advised of the costs throughout so that you know exactly how much our fees will be.
We are able to carry out some work on a fixed fee basis. Where an issue is more complex or requires a high level of expertise, we will charge an hourly rate.
We always discuss costs at the outset of any work so that you are aware of what to expect.
For more information, see our pricing page.
Speak to our shareholder agreement solicitors in Stafford & Rugeley today
Our shareholder agreement solicitors are able to provide a wide range of services in terms of shareholder agreements, such as drafting, or helping to draft shareholder agreements and shareholder contracts, providing shareholder agreement checklists, advising on shareholder buyer agreements and more.