Shareholder Agreement Cost Uk
It is also recommended that the articles of association be amended so that the statutory documents (articles of association and shareholders` contract) are complementary. The articles of association of a company are an authentic deed (which is subject to companies House) and some of the more personal or specific conditions (for example. B restrictions after termination) are better suited to the shareholders` agreement which remains private between the parties. For example, the standard articles of association do not allow the forcible transfer of shares held by a shareholder if that shareholder commits a breach of a shareholders` agreement or articles of association. A shareholders` agreement will bring clarity and direction to all by setting the framework for how your business will be governed and managed in the future and how to resolve issues or disputes like this. With a shareholders` agreement, all parties have a better understanding of their rights and obligations.