Shareholder Agreements

Howells Solicitors offer a leading and cost effective shareholder agreements service, drafting expert legal documents which set out the day to day rights and responsibilities of shareholders as well as the contingencies which may arise in the ownership and running of limited companies.

Although shareholder agreements are not a legal requirement for companies, many feel the benefits of creating such an agreement far outweigh the associated costs. The advantages of having a commercial legal expert draft a shareholder agreement for your business include:

• Improved dispute resolution – shareholders will be aware of the methods of resolution should a conflict arise between two parties with equal shareholdings;
• The interests of minority shareholders will be protected, making your business increasingly attractive to investors;
• The internal management of the company will be regulated and systemised;
• Control can be exercised over the transfer of shares;
• Restrictive covenants can be placed on those shareholders who leave the company;
• Shareholders agreements are private documents which do not need to be registered at Companies House. This ensures that details of the agreement remain private.

Protect the interests of minority shareholders

Professionally drawn up shareholder agreements can help to protect the interests of minority shareholders and make businesses more investible. Shareholder agreements dictate that certain decisions affecting the running of the company cannot be made without the agreement of all shareholders. Such decisions relate to important matters such as the issue of further share capital; amendments to a company’s articles of association; investment in further assets; acquisitions and mergers; the remuneration of high level employees and the appointment or removal of directors.

An expert service from Howells Solicitors

We have drawn up shareholder agreements for small and large businesses operating in a wide range of sectors. Our commercial solicitor team contains some of the best solicitors are dedicated to providing a prompt, professional and cost effective service.

To discuss shareholder agreements further, please do not hesitate to contact our expert team on 02920 404027 or email commercial@howellslegal.com.

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