Shareholders’ Agreements – protecting your business ownership interests

At Ralli, our specialist business solicitors act for companies, shareholders and directors to help them to agree and create Shareholders Agreements.

All private companies that are owned by a number of individuals should have a Shareholder Agreement to help regulate the way the business is run and to avoid disputes at a later stage which can be time-consuming and expensive to resolve.

If you are investing in a private company, especially as a minority shareholder, you should ensure that you have a Shareholders’ Agreement to protect your interests. Similarly, if you own a business and are planning to give away shares to investors or employees you will also need a Shareholders’ Agreement to protect your interests and retain control of the company.

A comprehensive Shareholders' Agreement will contain clauses to agree how the following aspects of running the company are regulated:

• Promotion of the company
• Business plan
• Entering into contracts
• Subscriptions for shares
• Rights attaching to shares
• Sale of shares and pre-emption rights
• Compulsory transfer of shares
• Good and bad leaver provisions
• Death or disability
• Early retirement
• Restrictive covenants to stop leaving shareholders or directors competing against the company or poaching staff or customers.
• Funding and third party security

We at Ralli have the experience necessary to draw up the relevant Shareholders’ Agreements, advise you on share acquisition, and represent your interests if a problem arises, whether you are in Manchester or the wider UK.

To get more information you can fill in our online enquiry form or to just have a chat with one of our specialist business law solicitors, call us on 0870 998 9000.