Protecting your interests ….
| Why is a shareholders agreement important? Whilst the directors operate a company and make the decisions, they only operate in accordance with the instructions of the shareholders to whom they are accountable. When disputes ultimately arise, some can be difficult to resolve and in the absence of a shareholders agreement, they could result in court proceedings and also allow departing shareholders to set up in competition immediately. Therefore an agreement sets out the ground rules for the relationship between shareholders, protecting the interests of one or more shareholders against the others and ensuring that they are paid a return out of the company’s profits. Just as dangerous as having no agreement is having one that is never reviewed and quickly becomes out of date. As well as drafting an agreement specific to your situation, we continually track changes in legislation that may impact on you and ensure that it is kept up to date at all times. |
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