At what point should you have a shareholder agreement?
The best time to establish a shareholder agreement is now. However, we understand that many business owners may already be well into their venture, working with partners, and generating revenue. You might feel that taking the time to draft a shareholder agreement could disrupt the flow of your business or is not necessary.
Now is the time to lay your foundation, particularly if things are going well and parties are positive and agreeable. Your business’s long-term success could depend on having a clear and well-drafted shareholder agreement in place.
Why is a shareholder agreement important?
A shareholder agreement outlines crucial aspects, such as:
- How decisions are made;
- How shareholders exit or handle buyouts;
- The allocation of responsibilities;
- Conflict resolutions procedures; and
- Voting rights and succession planning.
A shareholders agreement protects the interest of all shareholders and safeguards the long-term value and stability of your business.
How can HSJ Lawyers help?
At HSJ Lawyers, our business lawyers are deeply experienced in all types of shareholder agreements for small and large businesses. A lawyer will typically:
- Help bring parties together to discuss the merits of an agreement and how it benefits all parties;
- Gather details of the business and needs of individual shareholders;
- Draft an agreement for your specific business and circumstances;
- Address and negotiate concerns and needs of all parties to get to consensus on all details;
- Advise you of your risks and obligations to ensure your interests are protected;
- Facilitate the execution of the agreement by hosting a signing meeting or facilitating the signing of your agreement; and
- Follow up on any legal issues that need to be addressed.
Our goal is to help you avoid conflict and costly litigation so that you can focus on building your business and ultimately, realizing its full value. We can help guide this process, provide advice and protect your interests.
