Shareholders Agreement Example Uk

A shareholders’ agreement is an essential legal document for any business. It outlines the relationship between the shareholders and the company and sets out the rights and obligations of each party. In the UK, there are no legal requirements for a shareholders’ agreement, but it is highly recommended to have one in place to protect the interests of all parties involved. Below is an example of a shareholders` agreement in the UK.

Introduction

This shareholders’ agreement is made on [Date] between the shareholders of [Company name] (the “Company”). The shareholders agree to be bound by the following terms and conditions set out in this agreement.

Definitions

In this agreement, the following terms shall have the following meanings:

“Company” means [Company name].

“Shareholders” means the individuals or entities that own shares in the Company.

“Shares” means the shares in the Company.

“Board of Directors” means the board of directors of the Company.

“Majority” means shareholders holding more than 50% of the total Shares in the Company.

Purpose of the Agreement

The purpose of this agreement is to protect the interests of the shareholders and to outline the rights and obligations of each party.

Shareholder Rights

Each shareholder shall have the right to:

1. Vote on matters requiring shareholder approval in accordance with their percentage ownership of the Company.

2. Receive their proportionate share of any dividends declared by the Company.

3. Sell their shares in the Company subject to the conditions set out in this agreement.

4. Receive their proportionate share of any proceeds from the sale or liquidation of the Company.

Board of Directors

The Board of Directors shall consist of [Number] directors, with each shareholder entitled to nominate a representative to the Board in proportion to their percentage ownership of the Company.

Amendments to the Agreement

This agreement may be amended by the shareholders with the agreement of the Majority.

Sale of Shares

A shareholder may only sell their shares to another shareholder or with the agreement of the Majority.

Confidentiality

The shareholders agree to keep all confidential information related to the Company and this agreement confidential.

Dispute Resolution

Any disputes between the shareholders shall be resolved through mediation. If mediation is unsuccessful, the dispute shall be resolved through arbitration.

Conclusion

This shareholders’ agreement is a basic example of the terms and conditions that may be included in such an agreement. The terms of any shareholders’ agreement will depend on the unique circumstances and needs of the Company and the shareholders involved. It is important to seek legal advice before drafting or signing any shareholders’ agreement.