Shareholders Agreement – up to 2 Shareholders (Companies)

A Shareholders Agreement is a key document that formalises and regulates the relationship between individual shareholders in a company. The agreement should clarify issues such as the current and future direction of your business, voting rights, payment of dividends, company expansion to include future shareholders or selling the company/shares. Shareholders can refer to the contract should any disputes arise.

For a one time pre-agreed fee, we will draft a Shareholders Agreement customised to the specific needs to your company.

Who this service is for

This product is for an agreement between two parties, designed for use for a private company limited by shares where each shareholder is a corporate body.
Key benefits

  • Connect with an experienced lawyer quickly and simply
  • Get a qualified opinion on your issue/s
  • Upfront and transparent pricing

What happens after purchase?

Your lawyer will onboard you (KYC, conflicts checks, and client care letter - if applicable)
You send supporting material to the lawyer ahead of the meeting
Consultation takes place
Lawyer sends an email to summarize high level points from the conversation and quotes for any further work required
Leave a review and testimonial of your experience for future customers

FAQ’s

What the service will cover

We will confirm your specific requirements, explain and clarify options available and address all relevant points within your shareholder’s agreement, including the following:

  • The proposed nature of the business
  • How the company is going to be run and how decisions will be made
  • The rights and obligations of the company and its shareholders
  • Any restrictions on the shareholders’ individual rights and activities
  • Drag along and tag along rights
  • Agreement on dividend policy and on future contributions
  • The procedure for the issue of further shares and transfer of shares including pre-emption rights
  • Circumstances under which the company may be sold
  • The appointment and removal of directors
  • Key roles and responsibilities
  • Dispute resolution procedures
  • Minority shareholder protections
  • Non-competition obligations
  • What happens upon a shareholder leaving the company (for example on retirement or death)
  • Remedies for breach of the agreement (for example, deemed transfer of shares) and appropriate good/bad leaver provisions
  • Indemnities between shareholders and/or apportionment of liability
  • A first draft agreement as per your initial instruction and a revised draft (once you have a chance to review and discuss the first draft with other parties and ourselves).
What the service excludes
  • Further revisions of the revised (second) draft agreement and any negotiations with other parties, or other professional advisors e.g. other parties legal advisors, accountants or other parties or your tax advisors) will be chargeable as per hourly rate or a fixed price, if possible to scale.
  • Creation and inclusion of any areas not mentioned within ‘What’s included’ above.

Assumptions this service is based on

Prior to instructing us, you will have a clear or reasonably clear framework as regards

  1. who is/are directors and shareholders (individuals);
  2. one majority shareholder and one individual;
  3. business plan and business strategy;
  4. funding and contribution – current and future;
  5. share options, share schemes;
  6. agreement on vested rights and bad & good leavers terms; and
  7. agreement on exit terms and the evaluation of shares.

The negotiations and the terms with one majority shareholder as opposed to equal shareholding are usually easier to agree and negotiate. With this in mind, all parties will have a better understanding of their rights and obligations. Some of these will be obligations as to how they must act or behave in their operation of the business and others will be restrictions on what they can or cannot do without appropriate approvals.

This service is offered under the assumption that you have a good understanding of your business, articles of association and points mentioned above.

What you need to provide
  • The first step after the purchase will be to provide verification of your identity and supply the following documentation so your adviser can carry out their ‘Know Your Customer’ (KYC) and ‘Anti-Money Laundering’ (AML) checks. Please have the following at hand but note that this may not be a complete list:
    • Company name, VAT number (if applicable), registration number
    • Key contacts and associated contact details including email and mobile
    • The names and home addresses of all directors
    • Home utility bill (no more than 3 months old) and passport for every person who owns or controls more than 25% of the voting rights of your business
A woman in a green blouse and blonde hair standing by the wall
Beáta Dunn
ReGen Law

0203 322 8205

I am finance, banking, corporate and commercial lawyer with more than 20 years of experience. I have...

£1,500.00 +VAT

Sold By: Beáta Dunn

20 years experience across

Financial Services

Working with

  • Microbusiness (up to 10 Employees)
  • Medium-sized business (up to 50 employees)

Not sure what you’re looking for?

Let us match you with a legal advisor

Get matched

A woman in a green blouse and blonde hair standing by the wall
Beáta Dunn
ReGen Law

0203 322 8205

I am finance, banking, corporate and commercial lawyer with more than 20 years of experience. I have...

£1,500.00 +VAT

Sold By: Beáta Dunn

20 years experience across

Financial Services

Working with

  • Microbusiness (up to 10 Employees)
  • Medium-sized business (up to 50 employees)

Not sure what you’re looking for?  Let us match you with a legal advisor