Shareholder Agreements

Shareholder agreements are essential for new companies. They set-out the rights and obligations of shareholders and allow for the codification of powers afforded to directors.

The main benefit of shareholder agreements is that define the exact rules for shareholders interacting with each other and this minimises the risk of shareholder disputes. The shareholder agreement often limits directors rights and powers and this can assist with blocking phoenixing attempts or issuance of unauthorise director loans/payments.