Shareholders' agreement

From ACT Wiki
Jump to: navigation, search

UK company law - shareholders - contract.

A shareholders' agreement is an agreement between the shareholders in a limited company.

The contents of a shareholders' agreement, when there is one, might typically include matters such as:

  • Restrictions on sale or transfer of shares.
  • Compulsory sale or transfer of shares in particular circumstances.
  • Restrictive covenants to protect the business.
  • Entitlements to receive accounting and other information.

A well-considered and well-drafted shareholders' agreement may help to reduce future shareholder disputes.

See also