PROMOTION The Importance of a Shareholders' Agreement ny company with multiple shareholders should consider putting 7 \in place a shareholders' agreement. Paul Tyrer, Partner in the Corporate team at SAS Daniels LLP, explains why It is important to have a shareholders agreement in place. the other shareholders. Most shareholders wrongly assume that such a right of first refusal will be included by default under company law, but that is not the case. Shareholders' agreements can also contain provisions that force a shareholder to part with their shares on certain 'trigger events occurring such as death, mental or physical incapacity, bankruptcy or cessation of employment. In the case of the latter, without such a clause it is possible WHAT IS A SHAREHOLDERS AGREEMENT? Pa Tyrer, Partner. Corporate Team, SAS Dares LLP A shareholders' agreement is a highly flexible document which, unlike the company's articles of association, is a private arrangement between the individual shareholders and as such does not need to that an errant employee could cling onto any shares which at best could prove to be a nuisance or more seriously block certain The above points are not intended to provide an exhaustive summary and it is vital that any such agreement is tailored to key decisions from being made such as a potential sale of the company. It is also standard practice to incorporate a list of certain operational decisions, which must only take place with the unanimous consent of all or a majority of the your individual circumstances. be kept on the public record at Companies sas daniels LLP House. It can therefore include terms S that may be considered as confidential or commercially sensitive. One of the most eritical provisions for any agreement is to include a restriction Solicitors. For further guidance on shareholders agreements, please contact Paul Tyrer shareholders. This prevents key decisions which stops a shareholder from transferring being made by the majority without reference to the minority shareholders. on 01260 282333 or email their shares without first offering them to paul.tyrer@sasdaniels.co.uk EXPERT LAWYERS FOR YOUR BUSINESS NEEDS SAS Daniels' Corporate team have extensive experience dealing with an array of Corporate and Commercial matters and transactions. We take pride in our partner led approach and ability to deliver successful outcomes for business owners to achieve their commercial objectives. We can offer assistance in various matters including Company Sales and Acquisitions Business Sales and Acquisitions Management Buy-outs and Buy-ins Joint Ventures Shareholder Agreements Investments in Limited Companies Share issues Banking and Finance Company Secretarial If you require further assistance on any corporate law matter, contact us today (sas daniels LLP sasdaniels.co.uk | 01244 305900 Solicitors. SAS Daniels LLPsaimted Labity Partrershp egstered in England and Wles win registered number 0casa138 A lest of members is avalable at our regunered offce. 30 Greek Street, Sockport Cheshire, S BAD SAS Dariets LLP in ahorioed and segulated by the Solictors legulation Auorty PROMOTION The Importance of a Shareholders' Agreement ny company with multiple shareholders should consider putting 7 \in place a shareholders' agreement. Paul Tyrer, Partner in the Corporate team at SAS Daniels LLP, explains why It is important to have a shareholders agreement in place. the other shareholders. Most shareholders wrongly assume that such a right of first refusal will be included by default under company law, but that is not the case. Shareholders' agreements can also contain provisions that force a shareholder to part with their shares on certain 'trigger events occurring such as death, mental or physical incapacity, bankruptcy or cessation of employment. In the case of the latter, without such a clause it is possible WHAT IS A SHAREHOLDERS AGREEMENT? Pa Tyrer, Partner. Corporate Team, SAS Dares LLP A shareholders' agreement is a highly flexible document which, unlike the company's articles of association, is a private arrangement between the individual shareholders and as such does not need to that an errant employee could cling onto any shares which at best could prove to be a nuisance or more seriously block certain The above points are not intended to provide an exhaustive summary and it is vital that any such agreement is tailored to key decisions from being made such as a potential sale of the company. It is also standard practice to incorporate a list of certain operational decisions, which must only take place with the unanimous consent of all or a majority of the your individual circumstances. be kept on the public record at Companies sas daniels LLP House. It can therefore include terms S that may be considered as confidential or commercially sensitive. One of the most eritical provisions for any agreement is to include a restriction Solicitors. For further guidance on shareholders agreements, please contact Paul Tyrer shareholders. This prevents key decisions which stops a shareholder from transferring being made by the majority without reference to the minority shareholders. on 01260 282333 or email their shares without first offering them to paul.tyrer@sasdaniels.co.uk EXPERT LAWYERS FOR YOUR BUSINESS NEEDS SAS Daniels' Corporate team have extensive experience dealing with an array of Corporate and Commercial matters and transactions. We take pride in our partner led approach and ability to deliver successful outcomes for business owners to achieve their commercial objectives. We can offer assistance in various matters including Company Sales and Acquisitions Business Sales and Acquisitions Management Buy-outs and Buy-ins Joint Ventures Shareholder Agreements Investments in Limited Companies Share issues Banking and Finance Company Secretarial If you require further assistance on any corporate law matter, contact us today (sas daniels LLP sasdaniels.co.uk | 01244 305900 Solicitors. SAS Daniels LLPsaimted Labity Partrershp egstered in England and Wles win registered number 0casa138 A lest of members is avalable at our regunered offce. 30 Greek Street, Sockport Cheshire, S BAD SAS Dariets LLP in ahorioed and segulated by the Solictors legulation Auorty