Ashby de la Zouch

01530 639 031

Tamworth

01827 758 041

Shareholder and partnership agreements

 

At Fishers, we know that all too often disputes can arise between business partners and shareholders. Given the risks involved with starting a business and the disputes that can occur down the line, we believe a strong business needs a strong agreement from day one. If you are looking to create an agreement with your shareholders or business partner, get in touch today with our solicitors in Ashby de la Zouch or Tamworth.


A shareholder or partnership agreement is a written agreement between either the shareholders or the partners of a business detailing specifics on funding, management, owner responsibilities, direction and structure of the business.

 

In order to minimise the potential for conflict and reduce the risk of uncertainty in the future, we believe that it’s vital for a business to come to an agreement on these fundamental issues as early as possible.

 

At Fishers, our commercial solicitors can draft and review shareholder or partnership agreements that cover all the necessary grounds so the partners or shareholders in your business can share the same expectations, make decisions in confidence, and avoid conflict.

 

Each business is unique, and so too is each agreement. That’s why we believe it’s paramount to listen and understand your needs and concerns before drawing up an agreement. From professional advice on business strategy to the drafting of the agreement, Fishers shareholder and business partnership agreement solicitors will ensure that your partners or shareholders have the peace of mind to proceed and succeed.

 

Contact us today about the services we offer for shareholder and partnership agreements

 

For further information on any of our services or to book an appointment with one of our shareholder and partnership solicitors please call your nearest office or complete our online enquiry form and a member of our team will be in touch.

 

What our commercial solicitors can do for you

Our commercially aware and innovative approach to shareholder and business partnership agreements allows our clients to run their businesses smoothly and professionally with confidence in the legitimacy of their decisions.

 

We cannot overstate the importance of investing heavily in your initial agreements when entering into business with others. Whether you are forming a limited liability company, partnership or limited liability partnership, the shareholder and partnership terms on which you base the business will ultimately define how it is run and how disputes will be resolved.

 

Our expertise includes:

  • Drafting agreements
  • Reviewing agreements
  • Business strategy advice
  • Cross Option Agreements
  • Partnership Agreements

 

Why have a partnership agreement or shareholders agreement?

Whether you make an agreement or not, forming a business will automatically have consequences in law. For companies, the relevant law is contained in the Companies Act 2006 and partnerships fall under the Partnership Act 1980. Both pieces of legislation set out clear rules for the structure, conduct, duties and obligations of shareholders, partners, and anyone else involved in a business (such as directors).

 

However, in the UK, we are generally allowed to conduct business freely and the default laws on companies and partnerships do not necessarily apply to the realities of our individual circumstances. For example, by forming a partnership without an agreement:

  • All partners are jointly for the debts of the business, including being jointly and severally liable for the wrongful acts or omissions of the other partners in the course of business
  • Similarly, each partner is equally entitled to the profits of the business
  • Each partner has a right to participate in the management of the business unless decided otherwise by majority agreement
  • No partner can be removed unless all agree If one of the partners dies or become insolvent, the partnership automatically dissolves
  • There are no restrictions on the actions of partners after they leave the partnership, such as constraints on whether former partners can approach customers independently

 

By forming a limited company without an agreement, there’s uncertainty about:

  • How day-to-day decisions will be made
  • What happens when shareholders leave the business
  • How the shares are to be valued
  • Whether other shareholders have the right to buy the shares of a departing member
  • Whether shares can be sold to third parties after a member departs

 

By having a shareholder or partnership agreement, you can redefine the relationships between key stakeholders under a legally binding contract.

 

Partnership agreements and shareholder agreements can protect minority shareholders, correct many of the less beneficial aspects of forming a business, and answer outstanding questions about how the business is to be run.

 

What terms should be included in a shareholder or business partnership agreement?

We can provide practical advice which is tailored to your individual circumstances in line with your overall business strategy.

 

The following are important areas which should always be covered by your partnership or shareholder agreement:

  • How the assets of the business are to be owned
  • The financial obligations and entitlements of each party, such as the financial commitment required by each party
  • How will decisions about the business be made? Can some decisions be made by majority rule and which require unanimous agreement?
  • How to break deadlocks
  • What happens to shares in the business after certain events such as critical illness or death?
  • Non-compete provisions
  • Other exit planning provisions, including whether partners or shareholders can sell their stake at any point and clauses governing pre-emption rights

 

Shareholder and partnership disputes

If you are facing a shareholder or partnership dispute, our commercial dispute resolution solicitors can provide clear, realistic advice on resolving the issues at hand. Where there is a shareholder or partnership agreement, we can offer a detailed review on its contents and interpretation as well as assist in negotiations and settlement discussions.

 

It is rare that disputes have to go to court with the rising popularity and success of Alternative Dispute Resolution, but if it does become necessary in your case, we will robustly represent your position, giving you the best possible chance of achieving a positive outcome.

 

Why choose Fishers commercial lawyers?

Fishers is proud to serve local communities and businesses throughout the Midlands from our offices in Ashby de la Zouch and Tamworth.

 

We’ve attained an enviable reputation for our skilled and modern approach to legal services. Our priority is to help your business run smoothly and avoid any unnecessary disputes. Disagreements amongst partners and shareholders can have the potential to result in lengthy and expensive court litigation. However, with an agreement drafted by one of our specialist solicitors in place, you can easily sidestep impending legal battles.

 

We will assist any type of business and have a wide range of experience, from tech start-ups, to property developers, to regional companies.

 

Our comprehensive full solution services mean our clients choose to stay with us for the long haul, trusting us to continue evolving our advice as their business goals and strategies vary and develop.

 

Fishers Solicitors is independently regulated by the Solicitors Regulation Authority (SRA).

 

Contact our shareholder and partnership agreement solicitors in Ashby de la Zouch and Tamworth today

For further information on any of the above services or to book an appointment with one of our shareholder and partnership solicitors please call your nearest office or complete our online enquiry form and a member of our team will be in touch.

Business & Workplace

How to evict a commercial tenant

If you are a commercial landlord having difficulty with a tenant, read our quick guide to commercial eviction.
Read Article
Business & Workplace

Storm Arwen: Who is responsible for damage and loss in commercial properties?

If your rented commercial property has been damaged in a flood or storm, find out what your landlord must do when it comes to repairs.
Read Article
Business & Workplace

A time for giving? Companies reminded of need for safeguards on corporate gifting

The biggest penalty yet for a conviction under the Bribery Act is a reminder to be abreast of the legislation during the Christmas corporate gifting season.
Read Article
Business & Workplace

Christmas miracle undermines confidence

Breach of confidence has been in the headlines with the recent case brought by the Duchess of Sussex against the press for making use of a private letter she had written to her father...
Read Article
Business & Workplace

Return to the workplace: Making adjustments to the workplace for employees with a disability

When making plans to return to the workplace following Covid-19, it is essential to consider the needs of disabled employees. Read our guide.
Read Article

 

 

HOW WE CAN HELP YOU?

HOW WE CAN HELP YOU?

Whatever your needs, assets or personal situation, we will listen to you and provide friendly and practical advice. Understanding your circumstances is the most important thing, so if you prefer to meet in person, by video link or something else - no matter where you are, we’re here to drive the change you need, or solve the problems you have.

Ask a Question Request a Callback Get a Quote

Latest News and Events

Business & Workplace

How to evict a commercial tenant

If you are a commercial landlord having difficulty with a tenant, read our quick guide to commercial eviction.
Read Article
Disputes & Claims

Can you claim compensation if you are injured skiing or snowboarding?

If you have been injured as a result of a skiing, snowboarding, or other snow sports accident, find out how to make a claim with our quick guide.
Read Article
Business & Workplace

Storm Arwen: Who is responsible for damage and loss in commercial properties?

If your rented commercial property has been damaged in a flood or storm, find out what your landlord must do when it comes to repairs.
Read Article
Family Law

Mistakes to avoid when negotiating a separation agreement

If you are separating from a partner, you may have considered a separation agreement. In our latest article, we set out common mistakes to avoid.
Read Article
Team Fishers

Meet our new Solicitor - Jonathan peck

Jon re-joins Fishers as a Dispute Resolution Solicitor, after leaving the firm a few years ago due to a long commute. Since flexible and home working came into play, Jon was delighted to 'come back home.'
Read Article
Disputes & Claims

Renting and repairs: My landlord won't fix the heating, what can I do?

Winter is the worst time to be left without heating in your home. If your landlord won’t make repairs, you can take action. Read our guide.
Read Article

Your employment rights as a 'Christmas temp'

If you have started a new role as a Christmas temp, make sure you understand your rights. Read our quick guide.
Read Article
    FISHERS SOLICITORS
Fishers is authorised and regulated by the Solicitors Regulation Authority, SRA number 48317. The Solicitors Code of Conduct can be found by clicking the logo.

 

 

Cookie Policy   |   Terms & Conditions   |   Privacy Policy   |   Sitemap

© 2022 Fishers Solicitors

Website Design Quiet Storm Solutions Ltd | Manage Cookie Settings