If you have structured your new business as a company limited by guarantee and you have more than one shareholder you should ensure you have a Shareholders Agreement.
The Shareholders Agreement will specify the rights and responsibilities of your shareholders and directors and make it clear how and when shares can be sold or otherwise transferred to third parties. Shareholders may wish to leave the day to day management of the company to the directors but at the same time retain some control over what the directors can and cannot do.
Consequently, the Shareholders Agreement should include a list of matters which require the consent of either all shareholders or at least a high percentage of the shareholders. For example, a decision to sell the company or acquire new premises might need shareholder consent rather than being left to be decided by directors. Shareholders Agreements are effective in ensuring that potential disputes are avoided which might otherwise have a potentially fatal effect on the ability of the company to operate.
If you are a start-up business and need help contact Rob Moore on 0114 218 4051 or rob.moore@tayloremmet.co.uk
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