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Why are shareholders agreements important?

03.03.2022

Business

Shareholder Agreements, why they are important. 

 

A shareholders’ agreement is entered into between all or some of the shareholders in a company. It regulates the relationship between the shareholders, the management, ownership of the shares, and the protection of the shareholders. Also governing the way in which the company is run. 

For limited companies, when it comes to decision making, Company Law states shareholders who own more than 50% can pass a motion at a company meeting regardless of the views of other shareholders and, if the shareholder(s) owns more than 75% of the shares they control the company outright and can veto the decisions of all other shareholders. 

 

 

Shareholder agreements should be an essential document for any limited company.  

Please speak to our business services teams should you need help in planning for an agreement, we can liaise with your solicitor.  

 

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