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Commercial services 3C

Shareholder relations

It’s easy to overlook certain aspects when setting up a new business, especially when they’re not mandatory legal requirements. For instance, shareholders’ agreements often get missed, but it’s crucial to have them in place to avoid future disputes.

What is a shareholders’ agreement?

A shareholders’ agreement is a confidential agreement between the company and its shareholders which governs relationships and reduces the risk of disputes. Every company with two or more shareholders should consider entering into a shareholders’ agreement regardless of the strength of existing shareholder relations.

Although directors control the company’s day-to-day business, shareholders have power to make critical decisions. Without a shareholders’ agreement, a majority of shareholders can make decisions at the expense of the minority, including removing a director from office or amending the company’s articles of association.

So, to ensure your stakeholders and business are protected our team are on-hand to provide comprehensive advice on your existing shareholders’ agreement and draft new tailored agreements to suit your business needs.

Meet the Commercial Team

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