Shareholder Agreements

Find out what a shareholder's agreement is

A shareholder’s agreement is an agreement between the shareholders of a company which is intended to regulate the relationship between them.  A shareholder’s agreement is different to a company’s articles of association and, as a general rule, it does not need to be filed with Companies House.

Services also offered in

Shareholder agreements are particularly useful in startups as matters, such as determining the process for how a shareholder can leave the company and how to resolve disputes, can be discussed and agreed in advance whilst there is no pressure on the parties.

A shareholder agreement will usually set out the rights, obligations, responsibilities and liabilities that each shareholder has. The agreement will often deal with issues such as decisions which require the agreement of either all or a specific majority of shareholders, what happens to shares (and how shares will be valued) when a shareholder wants to leave the company or if they die or become bankrupt.

The agreement may also include provisions for what happens if the shareholders want to sell the company. The agreement may also impose restrictions on shareholders, in particular, their ability to start a competing company. It can also provide a system for resolving any deadlocks in decision making.

The main aim of any shareholder’s agreement is to ensure the shareholders are aware of their rights and responsibilities and to prevent issues before they arise. They are essential for any startup and will become one of the most important documents throughout the life of the company.

Commercial Law Enquiry

Fill out the form and a member of our team will get in touch to discuss how we can help.

Mullis & Peake will use the information you provide in this form in accordance with our privacy policy. With your consent, we may from time to time send you general updates by email or post that we think you will find of interest.This includes notification of upcoming event and updates or alerts containing relevant legal news. You can update your preferences at any time and will be able to easily unsubscribe from anything that you do not wish to receive.

Related Videos

Meet OUR people

Corporate and Commercial Team

Head of Property

Joanne Wood

Joanne Wood is a ​Member and our Head of Property

Contact Joanne
Member

Denise Madams

Denise is a Member at Mullis & Peake and ​specialises in commercial and company work

Contact Denise

Call us now for corporate and commercial support

Our latest insights

Legal, Wills & Power of Attorney
Gifts – Fact or Fiction?
Nov 5, 2024
Legal, Wills & Power of Attorney
What is Estate Planning?
Nov 5, 2024
Company & Commercial, Legal
How the budget is going to impact UK Companies
Nov 1, 2024
Movers & Shakers, Mullis & Peake
Congratulations & Promotions – October 2024
Oct 31, 2024
Court of Protection, Legal
Autumn Budget 2024
Oct 30, 2024
Dispute Resolution, Legal
Landmark Renters’ Rights Bill — Implications for Private Residential Landlords
Oct 28, 2024
Legal, Legal Disputes
What Happens if I Want to Sell my House Whilst a Dispute is Ongoing?
Oct 28, 2024
Movers & Shakers, Mullis & Peake
HCCI Business Showcase 2024
Oct 24, 2024
Charity & Fundraising, Mullis & Peake
Charity Race Night 2024
Oct 24, 2024
Commercial Property, Legal
What is a Full Repairing and Insuring Lease
Oct 21, 2024