Shareholders’ Agreements

Integra Solicitors can protect the smooth running of your business with a carefully tailored shareholders’ agreement

A shareholders’ agreement is an essential document for any company. It clearly sets out how the relationship between shareholders will work and how the company will be managed.

Failing to make a sound shareholders’ agreement in writing can lead to problems with making important decisions and increase the risk of shareholder disputes. Getting an agreement in place protects you as a shareholder while also safeguarding the future of your business.

At Integra Solicitors, we understand the day-to-day challenges of running a business. Our shareholders’ agreement solicitors offer a mix of exceptional legal expertise with a strong commercial mindset. We ensure every detail and all scenarios are considered and accounted for in a way that makes sense both legally and from a business perspective.

Clients come to us from all across Cheshire and Greater Manchester, including Stockport, Cheadle, Wilmslow, Manchester and Bramhall. Over the years, we have earned a reputation for clear, no nonsense advice delivered with warmth and respect.

Our shareholders’ agreement solicitors can help you whatever stage you are at, from creating an agreement to understanding your liabilities and resolving disputes.

Drafting Shareholders’ Agreements

Every company should have a shareholders’ agreement. It should be created alongside your articles of association to make sure the two documents work effectively together. We can advise you on what to include in a shareholders’ agreement, help to negotiate the terms and draft the document for you, ensuring it is legally sound and will support the smooth running of your business.

Advice on Shareholders’ Rights and Liabilities

Shareholders have certain rights and liabilities with regard to a company they have invested in. It is important to understand where you stand so you can ensure that your best interests are protected. Our team can advise you on your rights and liabilities as a shareholder, as well as any steps you should take to protect your position.

Shareholder Dispute Resolution

Disagreements between shareholders are not uncommon, and they do not have to escalate or end up harming a business. With the right early intervention, it is usually possible to resolve shareholder disputes quickly and amicably. We can assist with agreeing a positive way forward, using alternative dispute resolution methods where appropriate, or taking stronger action to defend your rights and your investment where needed.

Shareholders’ agreements FAQs

What is a shareholders’ agreement?

It is a legal agreement, in writing, entered into by some or all of the shareholders of a company. A shareholders’ agreement can help to define the ownership of the company, how decisions will be made and what happens if things go wrong.

What types of shareholders’ agreements are there?

Shareholders’ agreements will generally be designed either to protect minority shareholders, equal shareholders or majority shareholders, depending on the situation.

What should a shareholders’ agreement include?

Typical issues to cover in a shareholders’ agreement include:

• How the company is financed
• How the company will be managed
• The company dividend policy
• The procedure for transfer of shares
• How decisions will be made
• What happens in a deadlock situation
• How shares will be valued

Your shareholders’ agreement should be bespoke to your business, so it is important to have specialist advice to make sure every eventuality is covered.

Why do you need a shareholders’ agreement?

At the most basic level, without a shareholders’ agreement, you will be entirely reliant on the company’s articles of association for how the business is run. A shareholders’ agreement can supplement what is set out in the articles of association and gives the shareholders options if a dispute arises.

A shareholders’ agreement can avoid situations such as a director being removed by a simple majority of shareholders. They can also be vital in deadlock situations, where shareholders controlling equal numbers of shares cannot agree on how to deal with an issue, preventing a decision from being made.

A shareholders’ agreement can also clearly set out which decisions shareholders need to be consulted on and how those decisions will be made. This can help the business to operate smoothly, as well as prevent tension between management and shareholders.