Shareholder Agreements

Shareholder Agreements protect a company and its shareholders.

Legal Advice for Start-ups



Case Study.




Luke Evetts of Evetts Legal Ltd. explains the importance of Shareholder Agreements.


All companies will have Articles of Association which set out the general rules about how the company is to be run. However, if a company has more than one shareholder, I would always recommend a shareholder agreement.

A shareholders’ agreement is simply an agreement between the shareholders of a company. A well drafted Shareholder Agreement protects the shareholders’ investment in the company and sets out practical rules relating to the company and the relationship between the shareholders. It would typically set out:

  • •  The shareholders’ rights and obligations;

  • •  Describe how the company is going to be run;

  • •  Rules balancing the rights of minority and majority shareholders;

  • •  Rules about how important decisions are to be made (including the sale of shares).




Shareholder disputes can be very expensive to resolve and have a significant negative impact on a company. In my experience, the negative impact is even more severe when dealing with shareholders who are family members or close friends who have fallen out. We can’t stop people from falling out, but we can make sure the agreements are in place to minimize the impact of shareholder disputes on the company and reduce the risk of legal action and associated costs.

Read more about: Shareholder Agreements.

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