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Hide Page Numbers in the Shareholders Agreement

Hide Page Numbers in the Shareholders Agreement

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Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What should a shareholders agreement contain?

A Shareholders Agreement is a written agreement between the shareholders or partners of a business. A Shareholders / Partnership Agreement covers the funding, structure, management and direction of the business. It outlines the responsibilities and obligations of the business owners.

Does a shareholders agreement need to include all shareholders?

A shareholder agreement will include the rights and obligations of each shareholder, how the shares of the company are sold, how the company will run, and how decisions will be made.

Can you have a shareholder agreement with one shareholder?

A shareholders agreement can set out the process for resolving disputes, whether by providing one shareholder (or a neutral third party) a tie-breaking vote, referring a matter to private arbitration or mediation, or some other method.

Are there any restrictions on what could be in a shareholders agreement?

Restrictive covenants prohibit shareholders from carrying out certain activities in order to protect the business. Typically, they restrict involvement with competing businesses and solicitation of clients, suppliers and employees.

Does a shareholders agreement need to be signed by all shareholders?

The shareholders agreement should be signed or executed by the company and each shareholder. Remember the legal requirements for a company and an individual to sign documents is different, so make sure that you review the execution blocks correctly and sign the right one!

Are shareholders allowed to see accounts?

Any shareholder has a statutory right to be provided with a copy of certain financial and related documents for the company. These are the companys annual accounts, any strategic report for the previous financial year, the latest directors report and the auditors report on the accounts.

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