A shareholders’ agreement regulates the relationship between a company’s shareholders and its directors. Striking a balance between the directors’ need to manage the company effectively and the shareholders’ desire to maintain some control over key decisions is often a delicate task.

A well-tailored shareholders’ agreement, designed to suit the unique needs of your business, provides a solid foundation for maintaining strong relationships between the parties involved.

Such an agreement typically addresses key areas, including the rights of shareholders, when they are entitled to vote, how a shareholder can be bought out of the business, and the conditions under which shares can be bought or issued.

Additionally, a shareholders’ agreement can help manage shareholder behaviour by preventing conflicts of interest, such as restricting involvement in rival businesses, enforcing confidentiality, and outlining restrictions on the sale of newly issued shares. It also sets out the procedure to be followed in case of disputes, ensuring clear and practical guidelines for resolution.

At RR Legal, we will work closely with you to understand the specific protections you require. We will ensure your shareholders’ agreement gives your business the operational freedom it needs while establishing robust regulations around share transfers, voting rights, and the issuing of new shares.

Although there is no legal requirement for a partnership agreement, having one in writing is highly recommended to prevent disagreements. In the absence of a written document, misunderstandings can easily arise, potentially damaging the business. A properly drafted partnership agreement addresses issues such as the powers and limits of each partner, their respective duties, administrative responsibilities, and how profits and losses are to be shared.

Crucially, a partnership agreement also outlines the process for a partner to exit the business, how a buyout might be arranged, procedures for removing a partner, and the steps for dissolving the partnership. It will also provide a clear dispute-resolution process, preventing costly legal battles in the future.