Shareholders' agreement: standard version
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
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About this document
A shareholders’ agreement is an essential document for the owners of any company. It rebalances control when there is different levels of involvement and power in day to day decisions, and protects the value and the interests of each party.
Not only should this template help you establish the strategic management structure you need to grow your business, but also ensure that your investment is protected when you or other owners decide to sell.
This template is our full standard version, suitable for most private limited companies regardless of the industry of the business or the number of shareholders. It could be put in place by a majority or a minority shareholder when the company is formed, or at any later time, for example, on change of ownership or when a significant debt investment is made or repaid.
Free to use
We provide this document free of charge as an example of the quality of our drafting.
There are no catches. Some of our competitors require you to subscribe to a paid monthly service only to have to cancel within days so as not to be charged. This really is a free download - we don't ask for your credit card information, and won't send you lots of marketing e-mail messages.
We hope that if you like the document, you might buy a different one from us in the future or use our document review service.
No other shareholders’ agreements for sale on the Internet are so comprehensive in their cover of legal issues, and the drafting explanations and tips supplied. This agreement has been carefully thought out and frequently updated over 15 years so as to give you a document that covers the law accurately but which, at the same time, helps you to avoid conflict in day to day practical areas of management and control.
In many areas, we give you complete alternative paragraphs and explain in the notes when each will be the most suitable for you.
Each provision is clearly worded and can easily be edited or removed without affecting the remainder of the document.
Examples of subjects covered are:
obligations of the company to the shareholders (the company is also a party to the agreement)
how shareholders will maintain their rights if they are not present at meetings
roles of directors and actions by the company or a director which require shareholders’ consent: controls and redistributes power between shareholders so that majority shareholders cannot force decisions
new shareholder rights and restrictions: even if he is a trustee in bankruptcy
special protection of a minority by specification of critical decisions that must be agreed by that shareholder
facility for a minority shareholder to appoint his or her own nominated director who cannot be removed by the others.
how to deal with new intellectual property
transfers of shares and rights of pre-emption or first refusal: when allowed, under what conditions and to whom
key man insurance
publicity about the deal
use of a shareholder’s own assets in the business
different valuation methodologies for the shares on the departure of a shareholder
Other versions of this agreement
We also offer other versions of this agreement for specific situations. including where a single person owns the majority of the equity, and where shareholders include professional investors who require more complex exit provisions.
This document was written by a solicitor for Net Lawman. It complies with current English law.
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