Where a company has more than one shareholder, shareholders' agreements are used to agree how the Company is owned and managed. Issues covered may include, among many others, who is required to approve certain decisions of the Company, rights to be or to appoint directors and controls regarding the issuing or transferring of shares. Whether ownership of the shares is equally split or there are minority shareholders whose interests need to be protected, it is generally advisable to put a shareholders' agreement in place to provide certainty and to avoid or reduce the effect of disputes between the shareholders.
The same and more issues may arise where investors agree to subscribe for shares in a company when significant negotiation of the rights and protections of the parties may be required.
In both situations the provisions agreed in the shareholders agreement may need to be supported or reflected with provisions in the articles of association of the Company and there is likely to be further company secretarial work required to give effect to and complete the mechanics of the arrangements agreed.
Our corporate solicitors have considerable experience and expertise in reviewing and advising on preparing and negotiating shareholders' agreements and investment agreements.
If you are considering putting in place or entering into a shareholders' agreement or investment agreements, please contact our corporate solicitors for legal help and advice on 08081668827.
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Disclaimer:
Information on this website is provided for general information purposes only. It is not intended to constitute and should not be relied upon as legal advice. There are a number of factors and circumstances which may be relevant to legal advice. The law may also have changed before we are able to update the information on this website. If legal advice is required, please contact us on 08081668827.
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