Industry:
Light manufacturing
Size of firm (no of employees, turnover):
7 employees
How the deal came about:
Existing client of the firm from start up.
What problem did client want us to resolve:
The company was changing its structure and wanted a formal Shareholders Agreement to regulate the relationship of the owners of the business shortly after incorporation.
How did we go about resolving problem and outcome:
Sitting down at a round the table meeting to discuss the interests and ambitions of all the business owners and reaching a fair and reasonable agreement between all of the parties as to how the business relationships should be dealt with in the future. This led to the negotiation and agreement of a Shareholders Agreement that enables the business to adapt and thrive within a structured framework that all parties have bought into.
Any particular issues highlighted by the case:
The importance of all the parties reaching an agreement on the future of the business at an early stage before changes in circumstances and financial positions cause conflict. A Shareholders Agreement is recommended for all limited companies if more than one owner, to avoid conflict in the future paralysing the business.
