There are various reasons why Shareholder disputes arises ranging from differing views on the company’s vision economically and ethically to the more frequent disagreements over the apportionment of dividends and other financial matters.
The surest way to avoid a Shareholder dispute is with a Shareholder’s agreement. Although not a requirement, it is a prudent and key consideration. This is especially prudent if there are more than two shareholders, as in this case, their obligations would not be covered by the Partnership Act 1890.
Our barristers are able to advise on all forms of Shareholder’s agreements arising out of all business transactions from investment to Joint Ventures (“JVs”) and from start-ups to mergers. We are also able to draft Shareholder’s agreements with a commercial eye and business acumen which are fundamental necessities to protecting clients’ interests.
Matters usually dealt within Shareholder’s agreement range from: policies on dividends and transfer of shares; disputes between shareholders; protection of minority shareholders; restrictive covenants; rights and liabilities upon a company sale; shareholder’s rights to appoint directors; transfer of shares and share valuation thereafter; and many more.
Shareholder’s agreements can be flexible and cover a plethora of matters which are of relevance to your business. No two companies are the same and it is therefore important, if the agreement is to be of value, to have an agreement which is tailored to meet the particular concerns and structure of each company. Our barristers will understand your company’s specific requirements so your agreement is drafted to suit you.