This shareholders agreement regulates a single venture or project that will be structured through a company. The project that the company will undertake could be anything: from a property renovation, design and creation of something, or buying a company in order to sell the assets. This agreement is different from other Net Lawman shareholder agreements largely because this is a single project venture, so the agreement places particular emphasis on the exit arrangements.
About this shareholders’ agreement
A shareholders’ agreement is an essential document for "partners" in a joint venture that will be structured through a company, particularly if contributions of time and money are not in equal proportions.
The shareholders may or may not be directors. Their contributions by way of loans may be different. One or more may work part time or not at all. One may be a “hands off” lender.
There are two essential reasons for having a shareholders' agreement:
The first is to protect minority shareholders' rights and investment value. Without an agreement, majority shareholders may force issues that are not in the minority shareholders' interests and that could reduce the value of the minority shareholders' interests in the company.
The second is clarity of decision making. The shareholders with most shares are able to dictate what happens. A shareholders’ agreement changes that by re-balancing powers to a formula that satisfies the worries of everyone, be he director or shareholder and whether he has lent money or not.
Having a clear agreement in place reduces the likelihood of disputes and makes resolving any that do occur easier. This shareholders' agreement protects the interests of the minority shareholders and provides a detailed framework of freedom for working shareholder-directors.
The law in this shareholders’ agreement
The law in this shareholders' agreement is based on both company law and commercial contract law. However, you do not need legal knowledge to decide how to deal with the options we give you in this agreement. It is simple and straight forward.
When to use this shareholders’ agreement
This agreement is suitable for any private company, no matter what its business. It is about rights, power, control and safeguards.
A company’s shareholders’ agreement can be redrawn at any time, but is commonly done when the relationship between the shareholders and the directors changes.
For a new company or one acquired from outright from other shareholders, it can be put in place from Day 1, or shortly afterwards. The best time is always “now”. Clarity on how decisions are made will let you sleep better at night, whether you hold a small proportion or a large majority of the shares.
Shareholders’ agreement features and contents
In many areas, we give you complete alternative paragraphs and explain in the notes when each will be the most suitable for you.
This document contains commercial paragraphs as well as what you might call technical legal provisions. You can choose which are suitable for your needs. Many are based on our practical experience as solicitors of dealing with shareholder disputes. Examples of these provisions are:
obligations of the company to the shareholders (the company is also a party to the agreement);
how shareholders will maintain their rights if they are not present at meetings;
roles of directors and actions by the company or a director which require shareholders’ consent: controls and redistributes power between shareholders so that majority shareholders cannot force decisions;
new shareholder rights and restrictions: even if he is a trustee in bankruptcy;
how to deal with new intellectual property;
transfers of shares and rights of pre-emption: when allowed, under what conditions and to whom;
exit strategy: particularly important for defined projects;
key man insurance;
publicity about the deal;
confidentiality;
use of a shareholders own assets in the business;
Other versions of this shareholders agreement
We have four other shareholders agreements for more conventional, long term businesses. All are designed for a private company in any business with any number of shareholders, some of whom will be directors. All assume that some shareholders will work in the company, but that is not essential.
Full money back guarantee – buy with confidence
This shareholders agreement template comes with a no questions asked full money back guarantee. You take no risk that it might not be right. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason you’re not happy, just e-mail us and we’ll refund your money in full immediately.
Guidance notes included - prior legal knowledge is not required
Comprehensive guidance notes, written by Net Lawman, are included. These notes ensure that you don’t need to be a lawyer or have knowledge of the law to understand which paragraphs you should edit to complete the template correctly.
Minimal editing required
This document has been written specifically in such a way that you don’t need to spend hours editing it. It uses an approach where you remove the sections that aren’t applicable to you, so you don’t have to add any back, write your own, or worry about whether you are using correct legal language.
Paragraphs have been written to stand alone from each other. Removing one that isn’t applicable to your circumstances doesn’t affect the standing of any other in the agreement.
Plain language minimises future disagreements
Like all Net Lawman documents, your shareholders agreement is real law written in plain language that all parties will understand. This will minimise the likelihood of later disputes.
If a dispute does arise and you find yourself in court, the judge will look more favourably on a legal agreement written in plain language over one peppered with complicated legal jargon. Your case will be stronger if it is clear that all sides understood the agreement when it was signed.
Delivered straight to your inbox
As soon as you complete the secure checkout process, we will send your shareholders agreement template straight to your inbox. We will also keep a copy for you for 60 days in our customer area so you can access it even when you are away from your e-mail.
Still unsure whether this is the right document for you?
If you are unsure whether this agreement is suitable for your particular circumstances, then you have two options. The first is to buy now, evaluate it, and use the 30 day, full money back guarantee to obtain a refund if it isn’t suitable. You take no risk in seeing the agreement. The second option is to contact us using the link below and ask. We can’t offer you legal advice on your situation, but we can help you find the document you want. We aim to respond to your question within 24 hours.
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Draftsman
This document is drawn and maintained by Net Lawman. It is real law in plain English.
