We have advised national and local Small and Medium Size Business clients for many years as to how they might best provide for private agreement regarding:
The rights and responsibilities of shareholders in private companies as to:
- The decision making process (principally the preserve of directors) - where do shareholders have a role to play in addition to that given by law?
- Access to books and records
- Pre-emption rights where one shareholder wishes to sell up
- What happens to shares and the company in the event of the death or long term incapacity of key people and shareholders?
If you are subscribing for shares in an existing company it is important that the terms of that subscription are properly addressed in the Shareholder’s Agreement.
In addition to the matters in common with Shareholders' Agreements, a Partnership Agreement can also address:
- Division of profit and loss
- Terms of Partnership Agreement,
- The structure of the partnership.
It is our experience that properly drafted Shareholders’ Agreements and Partnership Agreements help to guide the relevant parties in the course of their relationship, making the prospect of an ugly dissolution less likely. Investment now saves money later.
Further, when the eventuality of dissolution occurs, by sale, death or otherwise, a properly drafted Agreement gives a framework to allow that dissolution to occur without rancour, and in accordance with the wishes of the parties.
The above is not intended to be legal advice and should not be considered as such. Please contact us in our offices at Bracetown Business Park or by contacting us here.