Shareholders' agreements

An agreement between the owners of a new company in any industry.

• comprehensively covers issues that matter for founders and for investors
• can be used to re-balance the rights and obligations of minority shareholders

The template is drawn on 20 years of practical experience and includes all the options and explanations you need to enable you to craft the exact document you want.

This document provides for the legal and management issues that established companies face. It helps you to protect your rights against other shareholders and directors, prevents disputes, and clarifies the separate roles of stakeholders within the business.

This template is for a company that is the vehicle for a joint venture operated by two or more parties. The shareholders in the project could be two or more individuals or companies, whilst the venture could be any business, from a property renovation to the design and manufacture of an item that requires the specialist expertise and skills of all partners. Use for a project that has a purpose and structure over a short time scale.

Includes the provisions that a large professional or institutional investor such as a business angel, venture capital or private equity investor would require to protect their investment.

It also considers the provisions of minority shareholders, who by virtue of the circumstances are likely to be the founders and friends and family of the founders.

Additional features to other documents include:

• drag along and tag along rights
• key man insurance
• rights of preference
• rights of first offer
• increased reporting requirements

An agreement where each shareholder is the owner of his or her own leasehold property within a building or scheme that is managed by the company.

It provides clear and practical routes through the contentious areas of who controls what, and leaves the owners with an arrangement that maximises efficient, democratic management of the communal areas of their property.