Rollits LLP is an established law firm with offices in Hull and York. At Rollits we have a team of experienced corporate solicitors who provide corporate law advice and services on all aspects of corporate law including advising on and drafting shareholders’ agreements.
A shareholders’ agreement works alongside a company’s articles of association to document how the company should be operated, each shareholder’s rights and obligations in relation to the company and any protections for the shareholders.
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One key difference between a shareholders’ agreement and a company’s articles of association is that a shareholders’ agreement is a private document which does not need to be filed at Companies House. For this reason, a shareholders’ agreement is the preferred document for setting out certain restrictions/ limits/ procedures regarding the shareholders and the company that the shareholders would not necessarily want the public to be aware of.
- dividend policies
- the transfer of shares on death a shareholder
- financing of the company
- restrictions on decision making by shareholders
- restrictions on any transfers of shares and what should happen in the event of a deadlock on major decisions
A good shareholders’ agreement should also look to pre-empt any potential areas for dispute and set out how they will be addressed, therefore reducing the risk for future disputes and disagreements between the shareholders.
A shareholders’ agreement is a very flexible document drafted to meet the specific needs of a company and its shareholders. We have extensive experience in drafting shareholders’ agreements for many types of business including specific sector experience such as farming, veterinary practices and property development. We also have a breadth of experience in drafting shareholders’ agreements for a range of companies with differing relationships between the shareholders, for example large companies, large and small family owned companies, investor companies and companies with minority shareholders.
Our team of corporate solicitors will discuss with all or some of the shareholders (depending upon any potential conflict of interest) what provisions should be included in a shareholders’ agreement, any areas of risk and we will work with the shareholders to prepare and finalise the shareholders’ agreement.