Shareholders Agreement

Our Shareholders Agreement template:

  • Over 100 sold!
  • Drafted by an expert UK lawyer for reliability
  • Full guidance notes included for easy drafting
  • Suitable for any company in the UK
  • Includes our no quibbles satisfaction guarantee
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"I’ve used the Legalo shareholders agreement with a variety of clients who need to get something down on paper at the start of their business, as a cost effective route to good governance. It’s a simple process, backed up with appropriate advice if you need it.”
– Nick Forsyth, partner, Lambert Chapman Accountants

How Does It Work?

  • 1. Download
  • 2. Edit
  • 3. Print
  • 4. Sign

This template shareholders agreement is suitable for use by:

  • the owners of a limited company that has been incorporated in England and Wales; and
  • owners of a limited company that has been incorporated in Scotland.

This is one of our best-selling templates, with over 100 sold!

A shareholder agreement sets out the rights and obligations of each shareholder. It is an essential contract to put in place when a company has more than one shareholder. Whether you have a start-up or an established company, it is a document that will provide peace of mind once it is in place.

Why do I need a Shareholders Agreement?

The purpose of a shareholders agreement is to cover key issues in a business relationship, such as:

  • documenting how the shareholders will run the company;
  • how to resolve a dispute between shareholders;
  • how the company is valued; and
  • what is to happen if a shareholder dies.

Our template deals with all of these issues. Putting in place a written agreement between the shareholders helps to ensure the smooth running of the company. Shareholders agreements greatly reduce the risk of a shareholders’ dispute occurring. If a dispute does occur, then with a shareholders agreement in place it will be much quicker to resolve. It also becomes far cheaper and less stressful to resolve as the agreement includes a mechanism to sort this out.

It is a key document for shareholders in any business, but particularly suitable for small businesses. Both majority and minority shareholders benefit from the comprehensive protection provided by a shareholders agreement. It also works really well when the shareholders hold equal numbers of shares, e.g. 50/50 or 33/33/33, 25/25/25/25, etc, but you can also use it when there are not equal shareholdings, e.g. 75/25, 60/40, etc.

If you are still in any doubt over whether you need a shareholders agreement, please click on this link to our separate blog article that explains the need for one: https://www.legalo.co.uk/blog/5-reasons-business-needs-shareholders-agreement/. Wikipedia also has a helpful article on what shareholders agreements commonly cover: https://en.wikipedia.org/wiki/Shareholders%27_agreement. Call our free helpline now on 0333 355 4900 if you are still not sure.

Why use our Shareholders Agreement template?

David drafted this template. He is our co-founding, experienced company and commercial solicitor. You get a template that you can rely on to be both comprehensive and free of legal jargon. David is an expert in shareholders agreements and has drafted many of these agreements for past clients. He has also dealt with resolving many shareholder disputes, so knows well how to prevent shareholder disputes arising. He brings all of this experience to bear in creating a great legal template for you at a bargain price.

The agreement is simple to complete. We include detailed guidance notes to walk you through every clause in the contract. You can view an abbreviated version of the guidance notes here.

Included in the download when you buy this template are:

  1. Shareholders Agreement for use when you have 2 shareholders; and
  2. Shareholders Agreement for use when you have more than 2 shareholders.

So you can simply pick and use the version you need. Each comes with its own guide to help you complete it. The guide walks you through the shareholders agreement clause by clause. You will know what each clause’s purpose is and how to fill it in.

We have not adapted most of our templates specifically for use in Scotland. However, this one has, so you can use it for a company that is registered in Scotland.

How To Draft Your Shareholders Agreement

Download this shareholders agreement in Word format. Once downloaded, edit it to your requirements.

The download includes great guidance notes. They take you through each clause in the agreement for absolute clarity. This makes completing the final document simple. You should allow for an hour to complete the document.

The agreement is 14 pages in length. It provides robust protection for all shareholders, whilst remaining clear and simple to complete.

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