Shareholders agreement

Guide to the important issues in shareholder agreements and ability to create a solicitor drafted, interactive agreement

About this service

A Shareholders' agreement should be used to set out the duties and responsibilities of a limited company's shareholders. Shareholders can be individuals or companies or a combination of both. However, this shareholders' agreement is not appropriate for companies with more than one class of shares.

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Useful information

How to choose your business structure

When the time comes to select the right structure for your business, there are three main configurations to consider, each of which has advantages and disadvantages.

More information on limited companies

Private limited companies can have one or more directors and cannot offer shares to the public, whilst public limited companies must have two or more directors, and at least £50,000 of allotted shares before it can trade.

What are the benefits of a shareholders agreement?

The benefits of having a shareholder agreement in place include the protection of minority shareholders and the regulation of the appointment and removal of directors.

What are the benefits of creating a limited company?

The chief advantage of a limited company is that the liability of the people who own or control it is limited, due to the fact that, legally, the limited company is a separate entity.

The shareholders' agreement sets out:

  • The duties and responsibilities of shareholders in a limited company

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"Fantastic! The legal document I used was so comprehensive and easy to complete. It is very reassuring to know my business now has this level of protection"

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