Shareholders’ Agreement – up to 2 Shareholders (Individuals)

Name: Shareholders' Agreement - up to 2 Shareholders (Individuals)
Price: 1200.00 GBP
Availability: InStock

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 of your company.

Who this service is for

This product is for an agreement between two parties, designed for a private company limited by shares where each shareholder is an individual and not 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

who is/are directors and shareholders (individuals);
one majority shareholder and one individual;
business plan and business strategy;
funding and contribution – current and future;
share options, share schemes;
agreement on vested rights and bad & good leavers terms; and
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