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Shareholders' Agreement

Shareholders’ Agreement & Company Law Pack – Helpful Template documents

£199.00

Shareholders’ Agreement and Company Law Pack? Something you must have if you a run a limited company which has with 2 or more shareholders.

Whether you are just setting a company or taking on a new director this is an essential pack to save you time and money. It gives you:

  • a checklist of what you need and what you need to do.
  • the most essential documents you need.
Essential documents?
(1) A shareholders’ Agreement. You need one because, as a shareholder, you own part (a “share”) of the company – it’s your investment. If the company does well, you will be paid a dividend and your shares will be worth more. You need to protect your investment, so it increases in value.

Company law gives shareholders some rights. What rights you get depends on what type and how many shares you own. These rights are not usually enough to fully protect your investment. Directors are responsible for running the company for shareholders. As a shareholder you may not have a real say in how the company is run or how shares are dealt with.

(2) A Director’s Service Agreement. A company is a separate legal entity. A company employs each director (even if that director is also a shareholder. Think of the Director’s Service Agreement as a type of employment contract. You need it to be clear about the rights, responsibilities and expectations of the company and the director.

Whether you are just setting a company or taking on a new director this is an essential pack to save you time and money.

 

 

 

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Categories: Business Savvy Legal Documents, Company Law Documents
  • Description

Description

Shareholders’ Agreement & Company Law Pack  – what is it? 

This pack contains the essential documents that every limited company needs. It contains the following:

  • a company law checklist which explains the documents you need and the things that you must do
  • a shareholder’s agreement – the written agreement between everyone who own shares in a company.
  • a Director’s Service Agreement – a written employment contract between the director and the company.
Why do I need a Company Law Checklist? 
You need this law checklist to help you run your company. It explains
  • what you need to do
  • what documents you must use.

 

Why do I need a Shareholders’ Agreement? 

You need a Shareholders’ Agreement to protect both your shares and your company. It helps make a company more stable and profitable and avoid problems which could close the company down.

Every company has:

  • Shareholders who own shares in the company. They have invested in the company.  The law gives shareholders some rights but often not enough to fully protect their investment.
  • Directors who are responsible for running the company. Company law means that directors have duties and responsibilities towards the company.

In a small company directors and shareholders are often the same people. Problems also occur when you can’t agree on something important, like issuing new shares.

A Shareholders’ Agreement makes it easier to run a company. You can agree important things like

  • Making important decisions about how the company should be run (for example, limit the amount that the Company can borrow or decide who can fire a director).
  • When and how the company can issue and sell more shares.
  • What will happen if you can’t agree on something.
What’s in the Shareholders’ Agreement? 

Our agreement comes with notes and guidance so that you can tailor it to meet the needs of your company. It includes

  • Things that you want your shareholders to agree on. For example, limiting the company taking out loans.
  • What happens if the shareholders can’t agree on decisions (called “Deadlock”).
  • Rights of shareholders who only own a small number of shares (minority shareholding).
  • The process if a shareholder wants to sell or dispose of their shares. For example, you can make sure that the other existing shareholders get first refusal  (called “Pre-emption”).
  • If or when majority shareholders can make other shareholder sell their shares because the majority want to “sell the company” (called “Drag-along”).

 

Why do I need a Director’s Service Agreement? 

Firstly,  as an employer, a company must give the director important information about their employment. Both the company and the director to understand and agree the director’s role.

Secondly, having a written agreement makes this much easier and clearer. It means you can explain important information

  • Basic information – like the director’s hours of work, salary.
  • What’s expected from the director – their duties and responsibilities.
  • Arrangements for things like sickness and holidays.
  • What happens if things go wrong – discipline and grievance.
  • Ending the relationship – including notice periods and payment.
  • Protecting the company by explaining what a former director can and can’t do once they’ve left.
  • The Director’s legal responsibilities. 
How do I use the documents? 

(1) The company law checklist is a PDF checklist which you can use as you start and manage a company. This comes with a video guide which explains the checklist to you.

(2) The Shareholders’ Agreement and Director’s Service Agreement  are an instantly downloadable MS Word documents. They each come with notes and guidance so you can customise them to suit your requirements.

Are you running a business? 
If you are running a business don’t forget to look at what documents you need for your website.

Join our BB club for instant access to a mix of essential legal documents, practical know-how and support, helping you  confidently grow and protect your  business.

 

 

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