When starting a company with more than one shareholder, or when admitting new shareholders to an existing company, consideration should be given to establishing a shareholders’ agreement.
A shareholders’ agreement is a private document between the shareholders and does not usually require filing at Companies House, so the content is confidential to the parties.
Although there is additional time and expense involved initially, the existence of a well thought-out agreement can save time in the long run and provide some protection against expensive action between parties in any future disputes.
Our team of qualified company secretaries draft comprehensive shareholders' agreements that are tailored to suit our clients' needs. Our fees are often much more competitive than a solicitor, with drafting starting at £250 + vat and capped at £500 + vat. (Please note that whilst the drafting fees are capped, if additional structural changes are required to the company, these will be chargeable.)
For more information on the service provided, please read on.
Our agreements can cover all the common situations, as required, and the main topics for consideration are:
As we are not solicitors, there are some restrictions on what we can include in any Shareholders' Agreement. Essentially, we cannot include anything that is considered as "Reserved Legal Activity". This would include being able to prepare the agreement as a deed, or including any wording that could be construed as creating an instrument relating to real or personal estate for the purposes of the law of England and Wales.
We also cannot include any provisions relating to share options or intellectual property.