If your business is run as a partnership or you have shareholders with a financial interest in your company, it is important to put in place a formal, legally binding agreement.
Whilst no-one goes into business expecting things to go wrong or disputes to occur, having a partnership or shareholder agreement in place provides certainty and peace of mind for all concerned.
The main purpose of a partnership agreement is to protect the partners’ investment in the firm and to establish a fair relationship between them.
It defines the share of the profits (and losses) along with the responsibilities and rights for each partner.
A partnership agreement sets out detailed and practical rules for the firm and its partners, and will generally cover the following:
A shareholders’ agreement sets out the relationship between the shareholders, how the business will be run and what happens if difficulties arise.
Unlike Articles of Association which are governed by corporate law, a shareholders’ agreement is dealt with under contract law. It is a private document and so does not need to be registered with Companies House or made public.
A shareholders’ agreement deals with some or all of the following matters:
A member of our company commercial team will be able to provide you with advice and help you to draw up the agreement, ensuring that it is legally binding and provides the necessary protection for you and your business.
Disagreements can occur in any partnership or business with shareholders.
The good news is that having an agreement in place will provide a pre-agreed ‘route map’ which will provide all parties with procedures for settling disagreements.
If your business is dealing with a dispute involving either a partner or shareholder, it can be helpful to have expert legal support and our specialist dispute resolution team will be able to advise you on the most appropriate and cost effective way to successfully overcome any issues.
For more information on partnership or shareholder agreements, please contact us today.
Supervising Director, Commercial Dept & Thurrock Office. Compliance Officer For Finance Administration
Commercial Hub, Basildon Supervising Department Director Company Commercial Commercial hub, BasildonOur specialist team of solicitors have the experience and approach you need. Contact us today.
19 Town Square,
Basildon,
Essex, SS14 1BD
Tel: 01268 240000
105 High Street,
Rayleigh,
Essex SS6 7QA
Tel: 01268 988488
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Chelmsford, Essex, CM3 5XB
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Grays, Essex, RM16 6HH
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Christopher Martin Road
Basildon Essex
SS14 3EZ
Tel: 01268 240000
Palmers Solicitors is the trading name of Palmers Law Limited (company registration England & Wales: 09464224) registered office 19 Town Square, Basildon, Essex SS14 1BD and is authorised & regulated by the Solicitors Regulation Authority, SRA No: 813805 | VAT Number: 394 924214.
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