• Skip to main content
  • Skip to footer

Cheyney Goulding

Cheyney Goulding Solicitors

t: 01483 56 76 76   e: legal@cheyneygoulding.co.uk

alt-text

  • Home
  • About
  • Business Services
  • Wealth Management
  • Team
  • Contact
  • Insights

Do I Need a Shareholders’ Agreement?

04/04/2023 by Tom Marshall

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

Do I Need a Shareholders’ Agreement?

 

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.

 

Filed Under: Business

Footer Widget Header

 

Footer

Site map

  • Home
  • About
  • Team
  • Insights
  • Careers

© 2025 Cheyney Goulding LLP

Business Services

Business services

  • Commercial Agreements
  • Commercial Property
  • Corporate & M&A
  • Data Protection & Privacy
  • Dispute Resolution & Litigation
  • Employment
  • Finance, Lending & Security
  • Information Technology
  • Intellectual Property

Wealth Management Services

Wealth management

  • Inheritance Tax Planning
  • Later Life Planning & Care Home Fees
  • Powers of Attorney
  • Probate & Estate Administration
  • Trusts
  • Wills
  • Residential Property
  • Contentious Probate & Will/Inheritance Disputes
  • Court of Protection Advice & Applications

Contact

Phone Number:   01483 56 76 76

Fax Number:   +44(0)1483 30 05 38

Email:   legal@cheyneygoulding.co.uk

More

More

  • Complaints handling policy
  • Prices & services information
  • Privacy policy
  • Privacy notice
  • Cookie policy

Cheyney Goulding LLP is a limited liability partnership registered in England and Wales with registered number OC329864 and VAT number 641411771. The registered office and principal place of business is at Ward House, 6 Ward Street, Guildford, GU1  4LH. The members are G.R. Young and T.M. Marshall.

Cheyney Goulding LLP is authorised and regulated by the Solicitors Regulation Authority and our professional code of conduct can be accessed here.

Brand and Website by Supafrank. Photography by Matt Wreford