Partner and Head of Wills & Estate Planning at Andrew & Co Solicitors Helen Newson writes...
Shareholder and Partnership Agreements
Whether you are a limited company or a partnership it will be important to have some agreement on issues such as how decision making will take place, what happens if the shareholders or partners fall out with one another, how will a share in the business be valued should someone want to leave the business.
A well drafted shareholders' or as the case may be, a 'partnership' agreement can be invaluable in helping to protect the investment made by any individual as well as ensuring that the business and its affairs are run as agreed between everyone.
Such agreements can be an effective way to minimise the potential for disputes by making it clear how decisions will be made in the business and thereby saving valuable time and costs for both parties who may otherwise have to seek legal advice.
These kinds of agreements can also regulate a situation where an individual may wish to sell his share in the business by providing a process to determine how and whom the share in the business may be transferred to as well as a mechanism for valuing those shares.
Instructing a solicitor to draft a shareholders' or partnership agreement for your business can help to protect everyone's interests and allow you to focus on the important issues such as running and growing your business without the disruption that can be caused by these types of issues.
If you would like further information or to make an appointment with a member of our Corporate & Commercial team, please contact us on 01522 512123 (Lincoln) or 01636 673743 (Newark).