Business

As a business owner, you may be wondering if it’s time to update your terms and conditions for customers. The short answer is that it depends on your business and the changes that have taken place since you last reviewed your terms and conditions.

In general, your terms and conditions should reflect your business practices and protect your legal interests. They should be clear, concise and easy for your customers to understand. Here are some reasons why you may need to update your terms and conditions:

Changes in the law

If there have been any changes to the laws or regulations that govern your business, you may need to update your terms and conditions to reflect these changes. For example, if there have been changes to data protection laws or consumer protection regulations, you may need to update your terms and conditions to ensure that you are in compliance.

Changes in your business practices

If your business practices have changed, you may need to update your terms and conditions to reflect these changes. For example, if you have changed your payment or delivery methods, you may need to update your terms and conditions to reflect these changes.

Changes in your products or services

If you have added new products or services to your business, you may need to update your terms and conditions to include these new offerings. You may also need to update your terms and conditions if you have changed the way you provide your products or services.

Protection of your legal interests

Your terms and conditions should protect your legal interests, such as your intellectual property rights, liability limitations, and dispute resolution procedures. If you have not reviewed your terms and conditions recently, you may be leaving your business open to legal risks.

In conclusion, it’s important to review your terms and conditions on a regular basis to ensure that they reflect your current business practices and protect your legal interests. If you are unsure whether your terms and conditions need to be updated, it’s best to consult with a legal professional who can help you navigate the complexities of the law and ensure that your business is in compliance.

This article is for general information only and does not constitute legal advice. If you would like to discuss anything in this article, please get in touch. 

The author generated this text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication.

If you’re a business owner in England, you may be wondering whether you need a shareholders’ agreement. While it’s not a legal requirement, having one in place can be highly beneficial for your business. In this article, we’ll explore what a shareholders’ agreement is and why you may want to consider having one.

What is a Shareholders’ Agreement?

A shareholders’ agreement is a private contract between the shareholders of a company. It sets out the rights and obligations of the shareholders, as well as the procedures for making decisions and resolving disputes. It can cover a wide range of issues, such as:

1. How the company is managed
2. The roles and responsibilities of the directors
3. How decisions are made and what voting rights each shareholder has
4. What happens if a shareholder wants to sell their shares
5. How disputes are resolved
6. How profits are distributed
7. Protecting the company from unfair competition by individual shareholders

Why Might You Need a Shareholders’ Agreement?

There are several reasons why you may want to consider having a shareholders’ agreement in place. Here are a few:

Clarify Roles and Responsibilities

A shareholders’ agreement can set out the roles and responsibilities of each shareholder, as well as the directors of the company. This can help to avoid disputes and confusion down the line.

Protect Your Investment

A shareholders’ agreement can include provisions to protect your investment in the company. For example, it can specify how profits are distributed, or what happens if a shareholder wants to sell their shares.

Resolve Disputes

No matter how well a company is run, disputes can arise. A shareholders’ agreement can set out a clear process for resolving disputes, which can help to avoid costly and time-consuming legal battles.

Attract Investors

Having a shareholders’ agreement in place can give potential investors confidence that the company is well-managed and that their investment is protected. This can make it easier to attract funding and grow the business.

In Conclusion

While a shareholders’ agreement is not a legal requirement, it can be highly beneficial for your business. It can help to avoid disputes, clarify roles and responsibilities, protect your investment, and attract investors. If you’re considering setting up a shareholders’ agreement, it’s a good idea to seek legal advice to ensure that it’s tailored to your specific needs.

At Cheyney Goulding, we have extensive experience in advising businesses on shareholders’ agreements. If you would like to discuss your options, please don’t hesitate to get in touch.

This article is for general information only and does not constitute legal advice.

The author generated this text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication.

When setting up a company, there are several legal documents that must be drafted and agreed upon by its founders, including the articles of association and shareholders’ agreement. These documents set out the rules and regulations that govern how the company will be run and how decisions will be made. In this article, we will look at some of the most common provisions that are included in these documents.

Articles of Association

The articles of association are a company’s internal rule book. They set out the procedures for the management and administration of the company and govern the relationship between the company, its directors, and its shareholders. Some common provisions that may be included in a company’s articles of association are:

Objects Clause: This outlines the purpose and scope of the company’s business activities.

Share Capital: This section covers the company’s share capital, including the number of shares, their nominal value, and any restrictions on their transfer (such as pre-emption rights on transfer, drag and tag along rights and compulsory transfer obligations).

Director Appointment and Removal: This section sets out the procedure for appointing and removing directors, as well as their powers and duties.

Meetings: This outlines the rules for holding meetings of shareholders and directors, including notice requirements, quorum, and voting procedures.

Dividends: This section sets out the rules for the payment of dividends to shareholders, including the timing and amount of payments.

Winding up: This section outlines the procedure for winding up the company, including the appointment of liquidators and the distribution of assets.

Shareholders’ Agreement

A shareholders’ agreement is a private contract between the company’s shareholders. It sets out the rights and obligations of each shareholder and governs their relationship with each other and the company. Some common provisions that may be included in a shareholders’ agreement are:

Shareholder Rights: This section outlines the rights of shareholders, including voting rights, the right to receive dividends, and the right to participate in the management of the company.

Shareholder Obligations: This section outlines the obligations of shareholders, including restrictions on the transfer of shares and requirements to provide financial support to the company.

Board Composition: This section sets out the composition of the board of directors, including the number of directors, how they are appointed, and any special voting requirements.

Decision Making: This outlines the procedures for making decisions, including the types of decisions that require shareholder approval and the voting thresholds required for approval.

Dispute Resolution: This section sets out the procedures for resolving disputes between shareholders, including the use of mediation or arbitration.

Exit Strategy: This outlines the procedures for a shareholder to exit the company, including the sale of shares and any restrictions on the transfer of shares.

Conclusion

The articles of association and shareholders’ agreement are critical legal documents that govern the operation of a company. It is essential that they are drafted carefully to ensure that they reflect the intentions of the founders and protect the interests of the company and its shareholders. If you are starting a company, it is recommended that you seek legal advice to ensure that your articles of association and shareholders’ agreement are drafted correctly and cover all necessary provisions.

This article is for general information only and does not constitute legal advice. If you would like to discuss anything in this article, please get in touch. 

The author generated this text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication.