A Shareholders Agreement is a private agreement between the owners of a company in which they agree the purposes for, and mechanisms by which, it will be run.
At Blake-Turner we encourage all business owners who are setting up a new business, or entering a new stage of its growth, to meet with us and agree the objectives of the business in the short term and long term.
Companies legislation sets out default provisions for the management of businesses, but those basic provisions are not tailored to a specific company’s needs and, indeed, the default provisions are often inappropriate.
A Shareholders Agreement is a bespoke document which we will tailor to your exact needs. It allows the stakeholders to protect their investments (whether they be in cash, time or by way of other assets) and allow all the shareholders to agree the route forward together.
Shareholders Agreements also provide a useful tool to avoid dispute between shareholders. It is often invaluable for shareholders to have agreed from the outset how they will benefit from eventual sale of the business or, for example, raise working capital as a business grows. A Shareholders Agreement sets out that framework for successful growth and decision making as a business develops.
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