A Shareholders Agreement is a crucial document if you are operating a business with someone else. It is used with companies and should not be confused with a Partnership Agreement which is used in partnership arrangements. However, both documents are very similar.
A Shareholders Agreement is like a pre-nup for your company. It sets out the ground rules in case of a disagreement, split or the death or serious illness of a shareholder or director. It will cover things such as:
- What each party has contributed to the company initially (financially or otherwise).
- What happens if one or more shareholders want to leave the company.
- What happens if a shareholder breaches the shareholders agreement.
- What happens if a shareholder dies or is to unwell to perform their duties.
- How disputes are dealt with.
- How shares are bought and sold.
The Small Business Lawyer will work with you to create a custom document which suits the unique needs of your company.