Investors circumstances may change. Marriage breakup, death, or investment failure can cause individual shareholders to want to pull out of even the best investments. Carefully thought out Shareholders' Agreements can help avoid the pitfalls that occur all too often.
You cannot possibly plan for every contingency when starting a business but you should try. Shareholders' Agreements are essential especially where there are more than one shareholders.
This is especially important where there are financing or sleeping partners and managing partners.
The key areas are:
Each of these areas are fraught with difficulty, and are worth some consideration in advance.
The time to put a Shareholders' Agreement in place is immediately. Planning to do it in the future is always a mistake. There will never be time to do it when your attention is focussed on an active business, whether successful or failing.
The Best of Liverpool can help you identify a great solicitor who will walk you through the preparation of the agreement you need and cannot afford to ignore!
Author: Matt Connaire
