Multiple investors can have a huge impact on how business can grow and develop and the timescales that this is achievable in. It’s also incredibly beneficial if more than one is involved in the day to day running of the business and can contribute to decision making.
However, sometimes roles and responsibilities can become blurry and so it is important that a shareholder agreement is drawn up as soon as possible to clearly outline where each party stands. Clauses regarding, what falls within each parties remit, commitment timescales, development opportunities, buy outs, these are all things that need to be considered and agreed via a legally binding document.
Such an agreement is particularly important for private companies with multiple shareholders, some of whom may have more voting rights than others and all of whom will want a say in decisions that have the potential to affect the value of their investment.
At Stephens & Son in Chatham, our team of experienced corporate and commercial lawyers can draft a shareholder’s agreement tailored to your requirements which covers, among other things:
- the voting rights each investor will have;
- the votes required for certain decisions to be made;
- those decisions for which unanimous approval will be required;
- a right of first refusal for existing shareholders where an investor wants to sell their shares;
- restrictions on the sale or transfer of shares to third parties;
- the right of existing shareholders to buy the shares of an incapacitated or deceased shareholder for a pre-agreed sum;
- how a shareholder’s interests in the business will be dealt with if their shares need to be sold;
- the rights of shareholders if the business is restructured;
- safeguards to protect the interests of minority shareholders;
- a mechanism to prevent minority shareholders thwarting a business sale or other corporate transaction;
- a mechanism for forcing a disinterested shareholder to leave the business; and
- a procedure for resolving disputes within the business
Advising businesses throughout Kent and beyond
We have offices in Chatham, Gravesend, Maidstone and Tenterden within which we can meet you to discuss your requirements.
We can also offer meetings at your place of business or via a skype conference call where needed.
We offer an initial appointment to discuss your requirements at a fixed cost of £180 inclusive of VAT. After that we can arrange flexible payment terms, including monthly billing to help you budget.
Get in touch
Call us on 01634 811444 if you need our help. Alternatively complete our Contact Us form and we will be in touch as soon as possible.