If you are selling the majority of your shares (or buying a minority), a correctly drafted shareholder agreement is essential. We ensure that a number of important issues between shareholders are properly documented so as to avoid conflicts and ambiguities in the future.
If you receive a price for the remaining shares (to be sold) that is based on the business' revenue or profits, it will be especially crucial to correctly document the agreements in this respect. You want, naturally, to retain sufficient control.
Every business is unique, so shareholders’ agreements are tailored to satisfy a whole host of individual needs. Shareholders’ agreements contain, at a minimum, the following:
provisions on governance (ie minority protection);
provisions on the General Shareholders’ Meeting;
provisions on the disposal and encumbrance of the shares (lock up, tag along, drag along and exit);
investment and dividend policies; and
provisions about non-competition.
Our lawyers will help you to prepare your shareholders’ agreement and any related documents, such as board regulations.