Leeds Lawyers Advice for Partnership & Shareholder Agreements 

If you are going into business with another person or persons, you might need a partnership and shareholder agreement to make sure you get a fair return for your financial or non-financial investment. 

 

 

A shareholders agreement is a contract between the shareholders (and, usually, the company as well) which governs the relationship between the shareholders and places some element of control over the day to day business of the company. A shareholders agreement will commonly provide for the following: 

 

 

If there is no shareholders agreement in place, for as long as shareholders agree with the way the company’s affairs are managed and are happy with the relationships between themselves and the company, then no problems are likely to occur. However, when these matters break down, there is little in the general law than can be of much help – often the solution is drastic and results in the company ceasing to exist, or the shareholders engaging in lengthy and expensive legal battles. While a shareholders agreement cannot prevent every dispute, they can be a very useful tool in avoiding and managing such difficulties.