For Shareholders and Partnerships

Shareholder Agreement Solicitors

Our expert shareholder agreement solicitors can help you and your business create one of the most important legal documents a company can have. And if you’re a partnership, having a partnership agreement is vital.

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Experts in Law and Business

Solicitors for Shareholder Agreements & Partnership Agreements

A Shareholders Agreements is a vital document for every limited company. A shareholders agreement allows you to:

  • Regulate the affairs of a company without it being publicly available like Articles of Association are
  • Impose restrictions on shareholders both during and after their time of share ownership
  • Address what happens to your shares on death
  • Ensure that shares are not sold to a third party
  • Govern the rights and responsibilities of shareholders
  • Set down voting requirements and list what may require a greater percentage of the vote.
  • Help minimise the risk of shareholders disputes.

A Partnership Agreement meanwhile is an absolutely crucial agreement for any partnership, simply because without one the partnership will be governed by law from nearly 200 years ago and its wholly inappropriate. In a written Partnership Agreement, you’ll have an agreement over things like assets, capital share, decision making, expulsion and much more.

As our client you’ll get

  • Excellent advice, both legal and commercial
  • Fast and responsive – deals over the line as quickly as possible
  • Plain English – limiting jargon and legalese
  • Convenience – we’re digital, so there’s no traipsing into a boardroom office for constant meetings
  • Fixed fees – so you know exactly what you’re paying in advance.

Shareholder Agreement

An agreement between two or more shareholders of a limited company, setting out important things like share transfers and restrictions on dealings. 

Partnership Agreement

An 100% critical agreement for any partnership, used to govern the relationship between the partners of the business. 

A well drafted shareholders agreement will include a wide variety of terms. It is a contract between you and your fellow shareholders and the company itself.  A typical shareholders agreement will include terms relating to: 

  1. Business of the Company – What the company does and doesn’t do. 
  2. Company obligations – things the company is agreeing to do
  3. Shareholder obligations – your obligations as a shareholder 
  4. Dividend policy – how and when dividends can be paid
  5. Transfer of Shares – stopping shares from being sold to a third party – also known as pre-emption rights
  6. Issue of further shares – limiting new shares from being issues to stop watering down
  7. Restrictions on the parties – stopping shareholders from setting up in competition, stealing customers or staff
  8. Directors – usually a shareholder can appoint a director 
  9. Confidentiality
  10. General boilerplate clauses

There are a number of a benefits to having a shareholders agreement. These include: 

  1. Minimising shareholder disputes
  2. To have different class of shares with different dividends payable
  3. To ensure a third party cannot buy someone’s shares without first offering them to the other shareholders
  4. To protect founders on a potential exit / disposal
  5. To give minority shareholders protections 
  6. To restrict shareholders from setting up in competition with the business
  7. To demonstrate to Banks and financial providers that you’re a proper business
  8. To deal with what happens to the shares on death. 

Partnerships are a set of relations between parties carrying on a business in common with a view to profit. Partnerships do not have a separate legal personality and so cannot own assets or grant security over them, nor can they sue or be sued (however court rules permit the partners to be sued and to sue in the name of the firm rather than listing them individually in any claim. The Partnership Act 1890 (PA 1890) forms the basis of today’s partnership law. Although the PA 1890 covers most of the necessary ground in setting up a partnership, it does not cover all of it and some of its provisions are outdated. Therefore it is always advisable for partners to enter into a formal partnership agreement.

The usual terms of a partnership agreement may include: 

  1. Commencement and duration
  2. Partnership Name and place of business
  3. Capital
  4. Partnership Property
  5. Profits and losses
  6. Capital and Current Accounts
  7. Drawings
  8. Accounts
  9. Banking
  10. Insurance
  11. Duties and power
  12. Restrictions on Partners
  13. Managing Partner
  14. Meetings and voting
  15. Indemnity and expenses
  16. Holidays
  17. Cars
  18. Maternity Leave, Paternity Leave, Adoption Leave, Shared Parental and Parental Leave
  19. Incoming partners
  20.  
  21. Retirement and death
  22. Expulsion
  23. Payments to Outgoing Partners
  24. Restrictions on Outgoing Partners
  25. Further provisions relating to Outgoing Partners
  26. Confidentiality
  27. Dissolution
  28. General Boilerplate Clauses

We will always endeavour to provide you with a fixed cost for whatever work you require.

To allow us to do that, we always suggest we hold an initial ‘discovery call’ to understand better your requirements.

Generally speaking, the price of a basic shareholders agreement is £1,250 plus VAT up to perhaps £5,000 plus VAT for a more complicated one.  A Partnership Agreement will tend to be around £1,250 plus VAT. 

So get in touch today for a free no obligation call with one of our shareholder/partnership law solicitors.

Why use our Shareholder Agreement Solicitors?

The team at Your Business Lawyer have decades of experience in drafting and reviewing shareholder agreements and partnership agreements. We will work with you to get the document right, and importantly ensure that you understand what it all says. Sometimes these agreements are complicated and not the easiest to read through, but our task is to ensure that you know how it works. 

We act for large and small businesses. We know what is right for you and can give great legal advice as well as commercial business advice. 

Our lawyers are all partner-level consultant solicitors with a pedigree of excellence. 

So get in touch today to discuss how Your Business Lawyer can help with your company law requirements.

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From Our Founder

Why Choose Your Business Lawyer?

Hello, I’m Steven Mather the founder of Your Business Lawyer.

I’m passionate about providing excellent service to my clients. I’ve been doing it since I qualified in 2008, through a route which saw me become partner of Leicestershire based firm by age of 28, be featured in The Times as Lawyer of the Week, be a runner up for Solicitor of the Year and more besides,

I love working with small and medium sized businesses and my team here have huge expertise and experience in providing excellent service to clients.

It’s not just me saying it though, take a look at our client reviews – 5 stars all round.

But if you’re still unsure, pick up the phone or drop me a message and let’s have a free no obligation chat about your requirements and why I think Your Business Lawyer will be the best choice.

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Nexa Law @WeWork
5th Floor
10 York Road
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Office: 020 7504 7071