Shareholders and Partnership Agreements
Shareholders are the life-blood of a company but all too often what started out as a collective effort between a group of friends or acquaintances can turn into an expensive battlefield of conflicting requirements. Preparing and negotiating a well thought-out shareholders agreement at the outset can avoid such damaging battles by ensuring that all shareholders know in advance exactly what their rights are and what level of control they have over the company’s affairs and management. Hopefully, the final agreement will be put in a drawer and never looked at again. However, our experience shows that the shareholders are always best advised to go to the trouble and expense of a shareholders agreement at the outset, just in case things don't turn out as planned!
We can also assist minority shareholders by preparing shareholders’ agreements specifically tailored to protect the minority’s interest.
In larger or more complex partnership situations, it is advisable to have a partnership agreement in place otherwise the Partnership Act 1890 can have unwanted consequences in the event of a dispute. Click here for more information.
Similarly, the Limited Liability Partnership Act 2000 can have unexpected results for LLPs unless a members agreement is in place.
For further advice contact our team direct or talk to your usual contact in the firm.