A Shareholders Agreement governs the relationship between a company and its shareholders. Surprisingly, many companies do not take the time to put this type of agreement in place.
Consider the below scenarios:
- A dispute arises and a shareholder has to leave the company, can that person take their shares with them or can a sale of their shares be forced?
- Can the exiting shareholder be prevented from setting up a competing business?
Unless the company has a proper shareholders agreement in place, the answers to these questions may not be what the exiting shareholder or the remaining shareholders want to hear!
A Partnership Agreement is a confidential and binding agreement governing the relationship between parties involved in a partnership; it can include information regarding management, decision-making, dispute resolution and profit and loss sharing.
A partnership may exist where two or more people carry on business together with a view to making a profit.
Every partnership is different and it is sensible for partners to regulate their business relationship by documenting it within a properly drawn up partnership agreement.
If you do not do this, the terms of the partnership will be governed by a statute dating from the late 19th century, which is hardly satisfactory!
If you have concerns over the suitability or presence of either Shareholder or Partnership Agreements in your organisation, please contact us.