A shareholders agreement is a private agreement between the shareholders of a company. It governs the relationship between the shareholders and says what will happen to a shareholder’s shares in certain situations.
It can also set out management duties and responsibilities.
If your business plan includes an exit strategy this can be incorporated into and recorded in a shareholders agreement.
A shareholders agreement can detail what is to happen when a shareholder becomes seriously ill and no longer able to work in the business or dies, in which case arrangements can be put in place for an agreed sale of shares. This can provide financial protection to the family of the shareholder at what will be a very difficult time. We can advise on ways in which this can be made to work.rt