Shareholder agreements are of great value. They ensure that the interests of each party are reflected in an agreement setting out their respective rights. Such agreements might relate to the complexities of relationships among shareholders in companies or form part of the arrangements of a joint venture.
With the added advantage of confidentiality (which is not possible when drafting a company’s Memorandum and Articles of Association), such agreements can be used to deal with commercially sensitive matters. We have the skill and experience to act for you in negotiating and preparing shareholder agreements.
Some considerations for shareholders
- What class and number of shares is each shareholder to receive?
- Are there circumstances in which a shareholder will be compelled to sell his shares?
- On a transfer of shares, how are they to be valued?
- What is to happen to a deceased member’s shareholding?
- Have deadlock provisions been considered where there is an equal shareholding?
- Are “tag along” and “drag along” provisions required?
- Have pre-emption rights been considered?