Shareholders’ Agreement UK
What is a Shareholders’ Agreement and what does it do?
A Shareholders’ Agreement is a contract entered into and signed by shareholders of a Company, for the purpose of providing better internal governance and heightened clarity around expectations to both shareholders and directors. Although it is optional for shareholders to enter into, if a Shareholder Agreement is put in place, it can give enhanced legal remedies to aggrieved shareholders.
Shareholders’ agreements provide a particularly good foundation for many Start-ups, and allow give you the peace of mind to focus on growing and scaling your Start-Up.
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Who is a Shareholders’ Agreement For?
- Shareholders of a company
- Business partners
- Angel investors
- Founders
- Minority Shareholders
- Start-ups
- Executive directors
What are the benefits of a Shareholders’ Agreement?
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- Clarity – it is important that you have a document which governs the relationship between co-shareholders and particularly how you will make important decisions relating to the Company, including management of the Company and appointing directors in the face of disagreement.
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- Privacy – while much can be contained in the Articles of Association (a publicly-available document), there may be sensitive internal matters which you do not wish to disclose to the public. Shareholders’ Agreements are a way for you to keep your privacy and protect your business.
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- Protection – There may be many times where shareholders disagree about a course of action or even the direction of the Company. During such times, it is vital that you have an internal dispute resolution system to manage disagreements. A Shareholders’ Agreement is the place for this procedure to be documented.
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- Peace of mind – At some point, you or your co-shareholders may exit the Company. At this point, it is important that you have reference to the formal procedures and processes which must be followed, including who buy the shares and how to value the shares. This is important to get right the first time.
How do I get started?
- We’ll ask you to sign and return our Client Care Letter and to place monies on account.
- Depending on your availability, we’ll schedule a call within 7 working days, to take your instructions and learn about your business.
- We’ll aim to provide you with a first draft 7 workings days after taking your instructions.
- Once we receive your feedback, we’ll send you a final version of your Shareholders’ Agreement, ready for your partners to rely on.
How long does it take to create a Shareholders’ Agreement?
We can create a basic Partnership Agreement within 7 working days of you giving us instructions. If your Partnership Agreement is more complex, then it would take longer for us to prepare a first draft.
Review
- Review an existing Agreement
- Provide a legal opinion and summary of key clauses
- No amendments
Negotiate
- Review an existing Agreement
- Make amendments to the document
- Correspond with the other party’s solicitors
Create
- Create a new Agreement
- We’ll prepare a first draft for you to review and provide feedback
- We’ll incorporate any amendments and provide you with a second and final version.
OUR FIXED FEES
Quotations are confirmed in writing before work begins. Fees depend on complexity, the number of parties and turnaround required.
| Tier | What it covers | Approximate Timeframe | Fixed Fee |
|---|---|---|---|
| Review | Review of your existing Shareholders’ Agreement, report with prioritised risk table and suggested amendments | 7-14 days | From £500.00 |
| Bespoke Draft | New Shareholders’ Agreement drafted from scratch for your business, plus one round of amendments | 2-3 weeks | From £875.00 |
| Negotiation | Multi-party or heavily negotiated agreements, ongoing negotiation support to signature | Upon enquiry | Upon enquiry |