I want to start a new company with some colleagues do we need a shareholders agreement?

Shareholders agreements are an effective way to ensure that everyone participating in the incorporated venture as a shareholder understands (or at least is given the opportunity to understand) the purpose of the venture and what each other shareholder is seeking to get out of it.

Legally speaking shareholders agreements set the rules of engagement for the shareholders of a company, and should allow the shareholders to control the company and steer it in the chosen direction. And this includes allowing shareholders to get out, or be pushed out in certain circumstances as agreed between the parties.

However, our clients generally find value in preparing a shareholders agreement as it forces the shareholders to consider issues that they otherwise wouldn’t, and put mechanisms in place to minimise the damage if and when problems arise.

Simon Fifield
Focus: technology businesses Likes: disruptive technology and funding growth Profile
Simon Fifield
Posted in FAQ.