Limited Company Shareholders Agreement

"For Better or Worse Till Death or Dispute Do Us Apart"

A strange title you might think but the relationship between limited company shareholders in a business is often akin to a marriage.

Limited Company Shareholders Agreement Could Be as Important as a Pre-Nuptial Agreement

Everything is 'rosy' from the outset, the love and commitment is there for all to see and no one has ever contemplated the ghastly possibility of this ending and the consequences and effect of what a split or divorce will have on the relationship.

In fact the limited company shareholders agreement has often been referred to as the equivalent of a 'pre-nuptial agreement' between married couples.

A Limited Company Shareholders Agreement is One of the Most Important Documents It Can Hold

A shareholders agreement is one if not the most important document an owner of a private limited company can have in his or her possession.

The limited company shareholders agreement will regulate how disputes or differences between shareholders are to be resolved. It is a legally binding agreement between the owners of the business and can provide certainty as to how the business is managed, the obligations and duties of the shareholders and place limits on the behaviour of the directors.

It is a Private and Confidential Document

It is a private and confidential document that is not filed at Companies House. So no third party or competitor will know what you have agreed with your fellow shareholders for the running and success of your business including for that matter how you have agreed to end any relationship.

Click here to read about what a limited company shareholders agreement can protect you from

Avoid a Costly Messy Break Up

In the absence of such clear contractual provision, it will be down to the goodwill or lack of or even worse the Courts to resolve disputes between shareholders. All this will add up to great cost and uncertainty and is likely to have a detrimental effect on the business and the individuals involved.

Take Control With Agreements From Just £500 +Vat*

Here at Hattons we have the experience and resources to help shareholders sort out their relationship with their fellow shareholders and also the company.

We offer a free initial consultation meeting and competitive fixed fees for the preparation of such agreements and other necessary documentation starting from just £500 plus vat* (*Terms and conditions apply).

Click here to visit Hattons Corporate Law website section

Written by Clive Mackintosh- Solicitor

If you need legal advice on limited company shareholders agreements call our legal team on 08000 111 303 or alternatively visit

Categories: Corporate Law


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