If your business has multiple owners, with more than one shareholder or partner, then you really ought to have an agreement in place setting out the nature of your business relationship.
Without an agreement like this when faced with unforeseen circumstances – such as the death of one of your business partners or perhaps when you face a disagreement – how to respond to these circumstances is unclear, making costly disputes more likely, all at the expense of the business itself.
We can help you manage your most important business relationships.
How we can help
If your business is owned by several people and you would like to put in place an agreement between the owners, please contact our specialist Corporate team, and we can discuss the best way in which to get you set up.
Why do I need a shareholder or partnership agreement?
Many of the situations that are covered by a shareholder or partnership agreement are the sorts of things that business partners may not have given a second thought to when setting up the business – which is quite understandable, as we appreciate you will have a lot else on your mind when going into business.
These agreements can set out really important principles that will assist with the smooth functioning of the business. They can set out things such as how decisions will be made amongst the shareholders, whether certain decisions need more support, whether people can sell their share of the business (and if so, to whom) and what is to happen to their stake if they were to die.
Putting in place a well-drafted shareholder or partnership agreement helps to avoid business partners from falling out, as it makes certain that everyone is on the same page from day one. In this way time isn’t wasted trying to work out how best to respond to challenging situations, allowing the business to be as successful as possible.
Recognised and recommended
Our Business & Commercial team are recommended in three categories in The Legal 500 UK 2023 – with several colleagues receiving special recognition and head of department Jamie Arnall acknowledged as a ‘Next Generation Partner’.
Company and shareholder disputes
Our Litigation & Dispute Resolution team are expert in helping businesses and their key personnel through a variety of commercial disputes.
If you would like to some advice on your particular circumstances, please contact them for a confidential no obligation chat.