Shareholder Agreement Lawyers

Jonathan Mounteney

Solicitor & Licensed Conveyancer (1994 Qualified)
Director Practice Principal (M.D.)
Foundation Local Team Lead
Get in Touch

Amy Austin

Solicitor (2007 Qualified) / Director
Commercial Local Team Lead
Isle of Man, 0161 274 9571
Get in Touch
Kevin Tyler
Kevin Tyler
1731683652
A very professional, efficient service and good communications throughout the process. I would highly recommend Mounteney Conveyancers in Cheadle.
Ellie Fowler
Ellie Fowler
1730298577
My partner and I recently bought our first home. Anna was our solicitor and she was brilliant. As first time buyers we didn't have any knowledge of what to do/expect but Anna was great at explaining the process. Anna also was great at keeping us updated, at each stage we knew what was going on and an estimated time frame - we couldn't have asked for anything more! Thank you again for helping us.
kon kwok chu
kon kwok chu
1730291521
We would like to express our sincere gratitude to Anna for her exceptional representation during the sale of our property.
Katie and the team at the Cheadle Mounteney office have done sterling work on the sale of our property and got us over the line. Katie in particular applied extra detective work in regard to an historic oversight with the Freehold purchase (nothing to do with Mounteney) which could have scuppered this sale. Thank you Katie for your support and customer service which is much appreciated. Liz and family.
Ian Dillon
Ian Dillon
1729863805
I have recently sold a property using Mounteneys Conveyancers Cheadle. The service I received was excellent, despite one or two complexities. Mounteneys staff were patient, supportive and kind. I would recommend Mounteneys to anyone .
Jay In Woodford
Jay In Woodford
1729806460
We are extremely pleased with the whole Cheadle Office Team who dealt with the sale of our Apartment in Cheadle. I would like to thank Katie in particular who was professional and tenacious in keeping the Sales process moving in the past few weeks. I am delighted how quickly Katie made the sale move to completion. She was thorough and fantastic with her communication. I wouldn’t hesitate to use them again and will be recommending them to Family and Friends - Well done Katie - Keep up the great work - Highly Recommend.
js_loader

A Shareholder Agreement is crucial for any company, providing clarity and stability in governance. At Mounteney Solicitors, our expert Shareholder Agreement Solicitors specialise in crafting these essential documents, defining shareholder responsibilities, rights and obligations.

This agreement supplements a company’s Memorandum and Articles of Association, helping establish clear ownership and management structures while addressing potential disputes. By setting clear expectations, a well-drafted Shareholder Agreement encourages investment, promotes management stability and reduces conflicts, allowing businesses to focus on growth.

Our agreements cover essential aspects such as management, investment terms and business ownership dealings, including exit strategies and shareholders’ involvement in other ventures.

While employment details are usually outside a Shareholder Agreement’s scope, Mounteney Solicitors also offers legal services for contractor contracts and employment terms to ensure comprehensive legal support on all related matters.

With a wealth of experience, we provide a professional, approachable service, ensuring your Shareholders’ Agreement meets your specific needs and lays a strong foundation for your company’s success.

What is a Shareholders’ Agreement?

A Shareholders’ Agreement is a contract that some or all shareholders in a company enter into. It regulates the management of the company, the ownership of shares, and the relationships and protections among shareholders. This agreement also outlines how the company is to be run.

Shareholders’ Agreements are often used to protect shareholders by setting guidelines for handling potential issues. They can address a variety of situations, including:

  • Company financing: Establishing how the company will be funded.
  • Management: Outlining how the company will be managed.
  • Share transfers: Defining procedures for transferring shares.
  • Dividend policy: Specifying how dividends will be distributed.
  • Deadlock situations: Providing solutions for when shareholders cannot reach a decision.
  • Share valuation: Determining how shares will be valued.

Shareholders’ Agreements also include provisions to prevent disagreements and offer methods for resolving disputes effectively.

The benefits of a Shareholders’ Agreement

It is worth noting that a Shareholders’ Agreement is not a legal requirement. However, having one in place is highly beneficial.

As well as setting out the company’s activities and how important decisions will take place, it protects the interests of minority shareholders, for instance, by giving them a veto on decisions a majority shareholder might try to push through.

Some common problems of Shareholder Agreements

Shareholders’ Agreements outline how a company is managed and how relationships between shareholders are handled. However, they can sometimes lead to conflicts or complications. Some common problem areas include:

  • Directors vs members: Conflicts can arise when some shareholders are also directors whilst others are not, creating an imbalance allowing director-shareholders to influence decisions that affect all shareholders, i.e. setting salaries and bonuses, which can reduce profits available for dividends to non-director shareholders.
  • Transfer of shares: Shares can be transferred accidentally (e.g. through bankruptcy or death) or intentionally (e.g. for personal reasons or financial needs). Shareholders often want to control who can acquire shares and roles within the company. However, restrictions on transfers can be problematic.
  • Approving a change in business direction: As businesses evolve, it may be necessary to implement changes in products, services and/or operations. Issues can arise if there are disagreements amongst the shareholders concerning business direction. As such, the Shareholders’ Agreement should specify when member approval is needed for significant business changes to ensure all shareholders are aligned.
  • Managing changes in shareholder roles: Shareholders may wish to change their involvement level in the company from being an active director to a passive investor. If the agreement does not provide clear guidelines for these transactions, company stability may not be maintained.
  • Injection of debt: Loan agreements can restrict a company’s actions, such as taking on additional debt, which can give lenders, especially shareholders, considerable power; this is why it is crucial for the agreement to address how rights and roles change with large creditors and protect against preferential payments.
  • Competition concerns: Shareholders providing capital could have competing interests. All agreements should protect against conflicts of interest, and this becomes even more important if shareholders are involved in competing businesses.
  • Preventing competition from former shareholders: Former shareholders could also go on to establish competing businesses. Without a non-compete clause in the agreement, the company and remaining shareholders are not protected.

By addressing these common problems, Shareholders’ Agreements can help maintain clarity and prevent disputes, ensuring the smooth operation within the company. Consulting with legal professionals when drafting these agreements can protect your interests and support your business’s success.

How long does it take to draft a Shareholders’ Agreement?

Our work, from initial instruction to finalising the form of agreement, generally takes around 7-10 working days.

This time frame allows us to ensure all necessary details and legal requirements are thoroughly addressed, providing clients with a comprehensive and legally sound document. At Mounteney Solicitors, we prioritise efficiency and accuracy to meet our clients’ needs promptly and professionally.

How much does it cost?

Your supplier is unregulated Mounteney Legal Services Ltd, which does not charge VAT.

Our work will be charged a fixed fee of £500.

There is more about fees on our website here.

Contact our Shareholders’ Agreement Solicitors today

If your business requires a Shareholders’ Agreement, our Business Solicitors in Manchester are here to assist you. Our Commercial Agreements Solicitors possess an outstanding attention to detail, ensuring every aspect of your Shareholders’ Agreement is addressed with precision. We understand the nuances associated with these matters and provide bespoke solutions to meet your unique business needs.

If you are considering drafting a legible contract, we urge you to contact us today. With offices conveniently located in Bramhall, Cheadle Hazel Grove and Heald Green, We serve clients throughout the Stockport and Manchester area, including Altrincham, Poynton, Wilmslow and Sale. We also have virtual consultation options that offer the flexibility to accommodate your busy schedule.

Call us now and experience the difference our expert Solicitors in Stockport can make in protecting your business interests through a well-crafted Shareholders’ Agreement.