Shareholder and Partnership Agreements
Build your company’s strength from the ground up. Secure your interests, avoid costly disputes, and move forward confidently with contracts tailored to your business.
Protect your business interests from day one.
Setting up a new business or bringing on new investors is a thrilling venture, but it is easy to overlook the legal framework required to keep your activities running smoothly. A well-drafted shareholder or partnership agreement provides the necessary certainty for the future.
Our comprehensive legal agreements ensure that you and your partners approach every commercial transaction with a clear understanding of your rights and responsibilities. By putting formal records in place early, you provide a clear guide for your business, avoiding misunderstandings that could easily escalate into costly legal disputes.
Tailored business contracts for every structure
We provide comprehensive legal documentation tailored to your business’s precise needs, ensuring all parties are protected.
Shareholder agreements
Without a bespoke agreement, standard articles apply, potentially leaving shareholders in a difficult position. We structure tailored shareholder agreements that dictate voting rights, share valuations, and dividend policies. This provides a clear framework for the operation of the company going forward.
Partnership agreements If you do not have a formal agreement, the outdated Partnership Act 1890 will apply, giving each partner an equal say and may lead to a deadlock in decision-making. We draft agreements that clearly define management responsibilities, profit distribution, and liability, giving you full control over how your business operates.
Joint Venture agreements Entering a joint venture requires complete commercial alignment. We define the exact terms of your alliance, making sure all parties are shielded from unnecessary risk and that your shared commercial objectives are legally cemented.
Frequently asked questions
What is the difference between a shareholder agreement and articles of association?
Articles of association are a public, legally required document filed with Companies House that acts as your company’s general rulebook. They are binding on all shareholders but are often too generic for complex arrangements. In contrast, a shareholder agreement is a private, confidential contract between the shareholders. It provides specific, flexible rules for your nuanced commercial arrangements, defends the rights of minority shareholders, and outlines precise dispute-resolution procedures.
What are the key clauses to include in a shareholder agreement?
A strong shareholder agreement should include clauses covering voting rights, a dividend policy, and clear procedures for dispute resolution or deadlock. It can also include ‘drag along and tag along’ provisions for minor shareholders, restrictive covenants to prevent departing shareholders from taking clients to a rival business, and ‘good leaver and bad leaver’ provisions to determine the fair value of an outgoing shareholder’s shares.
Key clauses to include in a partnership agreement for a startup.
Startups need a clear business contract to override the default rules of the Partnership Act 1890. Essential clauses should outline how profits and losses are distributed, each partner’s initial capital contribution, and who is responsible for daily decision-making. You should also include expulsion clauses, restrictive covenants to protect your intellectual property, and explicit protocols for what happens if a partner wishes to retire or unexpectedly leaves the business.
How to update an existing shareholder agreement for business growth.
As your business expands, your original agreements may no longer reflect your operational reality. To update an existing shareholder agreement, you generally need the consent of all parties to the agreement. This is typically executed through a formal deed of variation, which legally alters the terms of the current agreement. All necessary parties must sign this deed for it to be enforceable.
Secure the future of your business
We are proud to serve clients across Gloucester, Cheltenham, and Stroud, building long-term relationships based on trust and results. Recognised for being proactive, cost-effective, and rated as ‘Excellent’ on Review Solicitors, we are ready to support your business.
Call our Company and Commercial team now to secure expert legal support for your business.