Shareholder and Partnership Agreements 
 
 
 
Shareholder and Partnership Agreements 
 
 

Many businesses start trading as a limited company but do not put in place a Shareholder agreement. This means that there are no rules as to how future developments should be dealt with when there may be more than one possible course of action for that company. Effectively this is like playing a game where there are no rules and no guidance as to how matters may be resolved.  

Many businesses start trading as a limited company but do not put in place a Shareholder agreement. This means that there are no rules as to how future developments should be dealt with when there may be more than one possible course of action for that company. Effectively this is like playing a game where there are no rules and no guidance as to how matters may be resolved.  

A Shareholder or Partnership Agreement will create the appropriate rules which have been agreed by all at a time when all parties are in harmony with each other. 
 
Most companies will have Articles of Association but very often these will be set template forms that do not allow for the particular business that they govern. Whereas a Shareholder or Partnership Agreement is contract between the owners of the business, signed individually by them providing a framework by which future decisions can be made. 
 
It will govern many foreseeable eventualities and also unforeseeable ones, and C S L J Wills will usually incorporate a clause to deal with such circumstances as: 
 
the death of a shareholder 
a shareholder losing mental capacity 
a shareholder becoming bankrupt 
a director/shareholder wishing to retire 
the business wanting to issue more shares 
the business wanting to raise finance or make investments 
how is a disagreement between shareholders dealt with 
the business is to be sold but a minority shareholder refuses to sell 
how does one decide upon the value of the business 
a shareholder leaving the company and then approaching the company's clients. 
 
 
A Shareholder or Partnership Agreement will create the appropriate rules which have been agreed by all at a time when all parties are in harmony with each other. 
 
Most companies will have Articles of Association but very often these will be set template forms that do not allow for the particular business that they govern. Whereas a Shareholder or Partnership Agreement is contract between the owners of the business, signed individually by them providing a framework by which future decisions can be made. 
 
It will govern many foreseeable eventualities and also unforeseeable ones, and C S L J Wills will usually incorporate a clause to deal with such circumstances as: 
 
the death of a shareholder 
a shareholder losing mental capacity 
a shareholder becoming bankrupt 
a director/shareholder wishing to retire 
the business wanting to issue more shares 
the business wanting to raise finance or make investments 
how is a disagreement between shareholders dealt with 
the business is to be sold but a minority shareholder refuses to sell 
how does one decide upon the value of the business 
a shareholder leaving the company and then approaching the company's clients. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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