Effectively managing and regulating the relationship between the shareholders of a company is essential to ensure that any potential issues regarding its control and operation are avoided. Creating a robust shareholders agreement is an essential way of achieving this.
At Thornton Jones, our shareholder agreement solicitors have substantial experience in working with a variety of businesses, helping to put shareholder agreements in place that provide a clear contractual framework and set out shareholders’ rights and obligations.
We understand that creating a shareholder agreement which is specifically tailored to suit a business’s individual needs and wider commercial goals is incredibly important. We make sure to take the time to get to know your business, drafting a robust shareholders agreement that leaves no room for interpretation.
Consultant solicitor Michael Cook from our corporate and commercial department has over 20 years of experience in the sector, having previously worked with various businesses across a wide range of industries. He is well regarded for being highly effective, with a broad range of commercial and legal expertise to fall back on.
Speak to our shareholder agreement solicitors in Wakefield, Ossett, Garforth, Sherburn in Elmet and Mapplewell today
For advice on shareholder agreements in Wakefield, Ossett, Garforth, Sherburn in Elmet or Mapplewell, West Yorkshire contact us today.
Have a quick question or want to request a call back? Use our online enquiry form.
Our expertise with shareholder agreements
We have experience in providing assistance and commercial guidance with all manner of shareholder agreements and will be on hand to ensure that the proper due diligence is carried out before anything is put down into writing.
Our shareholder lawyer’s expertise with shareholders agreements includes:
- Discussing how a shareholders agreement could benefit your business
- Advising on the specific type of shareholders agreement that would be best suited
- Drafting and advising on the terms of your shareholders agreement
- Reviewing any additional policies or existing procedures that may impact the shareholders agreement
- Supporting you through the negotiation process of putting forward a shareholders agreement and navigating any potential disputes
Our shareholder agreement fees
Our shareholder lawyers aim to make our fees clear and competitive, ensuring you are aware of the likely costs from the outset.
Our shareholder agreement hourly rates
Our corporate and commercial law solicitors charge between £190 and £250 per hour plus VAT for commercial work, including shareholder agreements, depending on the level of expertise you need for your case and the complexity of the work involved.
Our legal assistants’ fees are between £100 and £145 per hour plus VAT. For our trainee solicitors and paralegals, the cost will be between £150 and £190 per hour, plus VAT.
We make sure that we bill in regular instalments, and we are able to agree monthly payment plans where required, with interest at 8% on outstanding balances.
All fees are subject to VAT.
For more information, see our fees and funding page.
Shareholder agreement FAQs
What is a shareholder agreement?
Put simply, a shareholder agreement is a contract between the various shareholders in a company. Its purpose is to set out and regulate the shareholders’ commercial relationships with each other, as well as with the directors and the company as a whole.
There is no legal requirement to implement a shareholder agreement for your business, but it serves as a key aspect of structuring a new or recently acquired company – particularly as it should help to reduce the potential for any disputes or disagreements.
It is often the case that shareholders agreements are used in conjunction with articles of association to manage how the company should be run.
What should a shareholders agreement include?
A shareholder agreement can be adjusted to include any provisions the relevant parties feel is necessary. Typically, shareholder agreements will include the following:
- The rights and responsibilities of the shareholders
- The rights and responsibilities of company directors
- Provisions that deal with the transfer of shares
- Protections for minority shareholders
- Provisions for the unexpected death of a shareholder
- Dispute resolution methods
- Confidentiality and restrictive covenants
Is a shareholder agreement legally binding?
Yes, a shareholder agreement is considered to be a legally binding contract once it has been signed by all parties. This is assuming that the contract itself fulfils the criteria of a legally binding contract, in that there is an offer, acceptance, consideration and intention to create legal relations.
What is the difference between a shareholders agreement and articles of association?
A shareholders agreement establishes the contractual relations between the shareholders. The articles of association is a contract between the shareholders and the company itself.
It is not a requirement for a shareholders agreement to be filed at Companies House, unlike articles of association, which must be filed according to the Companies Act 2006.
Shareholders agreements are likely to provide additional important protections for shareholders that the articles may not necessarily cover. This is especially true for protecting minority shareholders, or providing methods for resolving disputes.
Why do you need a Shareholders Agreement?
There are various reasons why entering into this may be the right decision, depending on the circumstances.
For example, a shareholders buyout agreement allows your business to plan in place for any unexpected circumstances (such as a shareholder suddenly departing) and shareholder purchase agreements clearly set out the terms and conditions that would relate to the sale and purchase of a company and a silent shareholder agreement allows a shareholder to engage with the profits of a company without handling the day-to-day tasks of running it.
Having these sorts of agreements in place not only helps to clearly establish the rights and responsibilities of shareholders but also helps to reduce the potential for shareholder disputes, which have the potential to be very damaging.
Speak to our shareholder agreement solicitors in Wakefield, Ossett, Garforth, Sherburn in Elmet and Mapplewell today
For expert advice on shareholder agreements in Wakefield, Ossett, Garforth, Sherburn in Elmet or Mapplewell,, West Yorkshire contact us today.
Have a quick question or want to request a call back? Use our online enquiry form.
