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Shareholders’ Agreements

If your company has more than one shareholder, then you need a shareholders’ agreement. It is an agreement between the shareholders of a company that regulates their interaction, as well as other aspects of the business. Disputes can arise very easily in the absence of shareholder disputes, and while Jones Whyte are ready to assist you in shareholder disputes, having an agreement in place can help avoid the hostility, time and cost of a dispute. Contact Jones Whyte today and we can help you draft your shareholders agreement.

What Do Shareholders’ Agreements Cover?

Shareholders’ agreements are vital if you want to protect the interests of all shareholders, have certainty about how the company is run and have cover in the event of someone’s untimely departure from the company. Broadly, they are put in place to cover the following:

  • the nature of the company’s business;
  • the transferability of shares;
  • the mechanism for commercial decision-making;
  • the composition of the board of directors;
  • dispute resolution procedures;
  • clarifying each shareholder’s contribution to the company; and
  • the dividend policy.

The content of shareholders’ agreements can be as bespoke as you like. The specialist commercial lawyers at Jones Whyte will discuss with you the types of terms that can be included and ensure the right terms are included to address the needs of the company. For instance, you might require a right of first refusal for the other shareholders where one wishes to get rid of their shares. Further, you may wish to include a list of decisions that cannot be made by directors without the prior consent of a certain number of shareholders. Whatever your requirements, the specialist company law solicitors at Jones Whyte can help you.

The Advantages of Shareholders’ Agreements

Shareholders’ agreements offer a number of advantages. Although they mean incurring an up-front cost, the likelihood is that they can help you avoid greater costs down the line as you avoid disputes. They also offer a number of other advantages. Shareholders’ agreements are not open to inspection by the pubic, and are therefore subject to a greater degree of privacy. In addition, shareholders’ agreements are enforceable through the rules governing contract.

New shareholders

While new shareholders in a company are automatically bound by the articles of association, they are not automatically bound by the shareholders’ agreement. As such, it is important that when a new shareholder acquires shares in a company, that they formally agree to the shareholders’ agreement.

Contact our Company/Commercial Solicitors in Glasgow, Scotland

The solicitors at Jones Whyte have decades of experience between them in commercial matters. If you are unsure of your legal position as a shareholder, get in contact with us today. We can help you draft a suitable, enforceable shareholders’ agreement so that you make your position formal and secure. We pride ourselves on combining legal knowledge with commercial know-how to offer you a superior service. Jones Whyte is based in Glasgow and serve the whole of Scotland. Contact us today on 01413751222 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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