A Shareholders Agreement template for use by shareholders in a company.
Shareholders Agreement Template
A Shareholders Agreement is used to regulate the relationship between the shareholders and the company. A Shareholders Agreement is used to set out how the parties will run the business. The Agreement will also address the issue of what happens if the shareholders fail to agree on a matter or if they find themselves unable to take the company forward. Putting a Shareholders Agreement in place is not only a useful way to record the roles and responsibilities of the shareholders but it can also be particularly useful if a dispute should arise between the shareholders.
The voting rights of shareholders in a limited company will depend on the number of shares that they hold. A majority shareholding of over 50% will give control over the company and its general day to day running. 75% or more of the voting rights are required to change certain matters relating to the constitution of the company. Shareholders may not always be happy with this situation and may agree that a minority shareholder is to have greater rights than would otherwise be the case. This can be achieved through a shareholders agreement.
Clauses in this Shareholders Agreement Template
Our Shareholders Agreement template is suitable for use by individuals or businesses who own shares in a company limited by shares. The agreement can be easily customised to suit your specific requirements.
1. Definitions and Interpretation
2. Business Of The Company
4. Accounting And Other Matters
5. Company Dividend Policy
6. Status Of This Agreement And The Parties’ Obligations
7. Minority Protection
8. Promotion Of The Company’s Business
10. Shareholder Deadlock
11. Procedure on Winding Up
12. Transfer Of Shares
13. Entire Agreement
15. Waiver Of Rights, Compromises
16. No Partnership
18. Good Faith
19. Third Party Rights
21. Governing Law And Jurisdiction
If your company has shareholders it will be very important for you to have a Shareholders Agreement in place. We provide you with the most up to date and affordable agreement possible so that you do not have to use costly high street Solicitors.
The Agreement provides a definite statement of how the shareholders should interact and the roles that they have, in order to avoid the potential costs that could be involved if the shareholders reach a deadlock.
It is generally advisable to create a company's tailored Articles of Association at the same time as its Shareholders' Agreement to ensure that the two documents work together.
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