At the beginning of a new business project, it is often difficult to anticipate a scenario in which the company`s “partners” (partners in the context of a company) would not be able to agree on the decisions needed to move the business forward. Shareholders` contracts are different from the company`s articles of association. While the articles of association are mandatory and the company`s activity regime is in place, a shareholders` agreement is optional. This document is often from and for shareholders and exists certain rights and obligations. Perhaps the most useful is for a company to have a small number of active shareholders. This can be a useful tool, especially for small businesses that might want the original shareholders to keep the shares instead of allowing outside investors and unknown people to enter. After all, you went into business with your business partner for a particular reason. In the first part of the agreement, the company must be specified and identified as one party and the “shareholders” as the other party. If they resigned or left for some reason, you would most likely want them to sell their shares, otherwise they could be entitled to dividends generated by the hard work of the ongoing shareholders. A shareholders` agreement is not a legal requirement, so why invest your time and money to reach an agreement between the shareholders? The shareholders` agreement could contain a section in which the parties agree to waive a jury trial and settle all disputes through arbitration. The arbitration procedure should be discussed in depth and may be dealt with in a separate subsection. A partner agreement is one of the most important legal documents you conclude when setting up a new business. Shareholder agreements vary considerably from country to country.
However, in the case of a characteristic joint venture or business creation, it is normally expected that a shareholders` agreement will address the following issues: some risks may be associated with the introduction of a shareholders` agreement in some countries. If you are starting a new company and need help or have any questions regarding entering into a partnership agreement, please feel free to contact our experienced business lawyers in Bristol on 0117 962 1205 or fill out a contact form. . . .