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Partnership & Shareholder Agreements
Everyone starts their business venture with high hopes of success and a common vision, but unfortunately things can go wrong. The expression ‘prevention is better than cure’ has never been more relevant than in the case of having a properly prepared shareholders' agreement or partnership agreement for your business venture.
A shareholders' agreement or partnership agreement will regulate the business relationship. There is no ‘precedent’ or ‘template’ shareholders' agreement or partnership agreement that will apply to every business venture. These documents should be tailored to suit your specific business requirements.
It is of fundamental importance that whenever you establish a business, or buy into a business, there is a properly prepared shareholders' agreement or partnership agreement. The cost of fixing a problem after the fact can be very expensive when compared with the fee for preparation of the document at the commencement of the business venture, assuming that the problem can be fixed at all.
The shareholders' agreement or partnership agreement should contemplate all matters relating to the business venture, including:-
- the amount of money/capital each person will bring into the business venture;
- how the directors/partners are to be appointed and removed;
- the future allotment of shares in the company or appointment of future partners in the partnership;
- the exit strategy of shareholders or partners;
- the management, meeting and report obligations;
- when dividends or profits are to be distributed;
- the salary to be paid to employee directors or partners;
- what is to occur in the event of a default by a shareholders or partner of their obligations;
- what is to occur in the event of the death of a shareholders or partner;
- the different roles and responsibilities of the shareholders, directors or partners;
- how shareholders, directors or partners can access bank accounts and funds;
- what restraint is to be placed on shareholders, directors or partners if they leave the business.
Connolly Suthers has the expertise and knowledge to provide you with professional advice on the preparation of a shareholders’ agreement or partnership agreement. We can provide you with simple and usable advice, with a personalised service and at competitive rates.
If you require assistance with Partnership and Shareholder Agreements, please call or email: