Shareholders’ Agreements

Protecting relationships and preventing future conflict

A Shareholders’ Agreement is one of the most important documents in any company with more than one owner. It sets out how decisions are made, how shares are owned and transferred and what happens if things go wrong.

At Hopkins Solicitors, we help you prepare agreements that balance flexibility with protection – making sure the rules are clear, relationships are preserved and risks are managed.

Whether you’re setting up a new company or updating an existing arrangement, we’ll tailor the agreement to fit your business.

What’s Involved

We usually support with:

An initial consultation – to understand the company’s structure, the roles and responsibilities of the shareholders, the business goals and the relationships between shareholders.
Corporate governance advice – advice on what a company is, how it is run and managed, the rights and responsibilities of shareholders and directors and how the people involved may wear lots of different “hats” in their interactions with the company.
Drafting or reviewing a Shareholders’ Agreement – all building on our discussions with you on what you consider to be important. This usually covers decision-making, dealing with various events, exit routes, dividends and dispute resolution.
Interaction with other documents – such as the company’s Articles of Association (its constitution) and any investment or employment arrangements.
Planning for the future – including growth, succession and changes in control.

At an early stage, it is important to involve your other professional advisers – accountants and independent financial advisors – and we can then work closely with these to ensure the transaction progresses smoothly and any commercial or tax considerations are properly factored in.

Things to Consider

When preparing a shareholders’ agreement, it’s useful to think about:

Decision-making: Who can make which decisions, and how are disputes resolved?
Exit events: What happens if someone wants to leave, sell their shares, dies or becomes ill for a long period?
Remuneration: this can often be a mix of employment income, drawing on a loan account and dividends – how are the parties paid and rewarded for their risk and responsibility – this issue may also require input from your accountant or tax advisor.
Deadlock provisions: How will you deal with serious disagreements?

A good Shareholders’ Agreement can reduce the risk of misunderstandings and future conflict.

Let’s get started

Please get in touch with a member of our team – we’ll be happy to talk through your plans and explain how we can help.

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