Shareholders’ Agreement

When you’re starting a business with other people, it’s best practice to put a shareholders’ agreement in place. Your shareholders’ agreement is the key document that formalises and regulates the relationship between the individual shareholders in your company. It will clarify important issues such as:
  • The current and future direction of your business
  • Voting rights for each shareholder
  • Payment of dividends
  • How to conduct shareholder meetings
  • What happens when you want to sell your shares
  • How you’ll deal with disputes between the shareholders
Every shareholders’ agreement is tailored to the specific requirements of the business. Our lawyers listen to your requirements and draft a shareholders’ agreement that is customised to your business. With expertise in a range of different industries, you can find a lawyer who understands your sector. They can advise you on the ways in which other businesses have dealt with specific issues that impact the drafting of your shareholders’ agreement. This service is for drafting a shareholders’ agreement with up to 5 individual shareholders. If your business has more than 5 shareholders, or one or more of your shareholders is a corporate entity, please choose a lawyer and liaise with them about your requirements. They will provide you with a quote for an additional fee.

What you will get from this service

A 60 minute consultation with your lawyer to align objectives. You’ll discuss:
  • The names of the shareholders
  • The percentage of each of their shareholdings.
  • The objectives you want to achieve with the agreement
  • Your specific questions about the agreement
  • Your lawyer will run through the key information they need from you to begin drafting the agreement
You’ll receive a professionally drafted shareholders’ agreement for a private company limited by shares, where each shareholder is an individual.

What this service will enable you to do

You will have a formal, legally binding document that regulates the relationship between the shareholders. This provides you with:
  • Protection for your shareholders and their investment in the business
  • Specific protection for minority shareholders
  • Specific protection for majority shareholders
  • Clarity on each individual’s roles, rights, responsibilities and obligations as shareholders in the company.
  • Control on the transfer of shares
  • Regulation on the management of the company.
    • The directors usually make decisions on management and strategy, but shareholders may want to provide their input or approval for certain decisions.
  • Efficient recourse in the event of a disagreement.
    • You’ll have a robust cause of action in breach of contract.
    • Without a formal contract, you’ll spend more time and money trying to prove your case.
  • Peace of mind that the shareholders are being treated fairly.

What happens after I hire a lawyer?

1. Onboarding

You send your lawyer proof of ID and address and your lawyer checks for conflicts. You send any relevant documentation to your lawyer. Your lawyer send you a client engagement letter to sign and return.

2. Personal Consultation

Choose between a phone, online or face-to-face meeting with your lawyer

3. Draft documentation

Your lawyer sends you a draft version of the document for you to review

4. Revisions and approval

You review the draft, provide comments if necessary, and request revisions. Your lawyer will provide you with another iteration, incorporating your changes as far as possible. Once you’re happy with the document, you approve the final version.

5. Leave a review of your Experience

Leave a review for Legal Drop and your lawyer