Can I Use A Template Shareholder Agreement?
Shareholder Agreements are a key legal document outlining the obligations, responsibilities and rights of the company and its shareholders and offering protection to all parties in the event of a dispute. They outline the rules with regards to how important shareholder decisions are controlled, how shares are transferred, and how disagreements are resolved among other things.
It can be tempting to use a template Shareholder Agreement available online as a cost-effective solution for your company. But, while one of these templates is a better option than having no agreement in place at all, having an Agreement that has been drawn up specifically for your organisation is far better.
Is A Template Shareholder Agreement Suitable for Small Businesses?
If you are only running a small company and require just a basic Shareholder Agreement, you may find a template Shareholder Agreement suitable. Nevertheless, in most cases, Shareholder Agreements are complex arrangements requiring a customised, highly detailed legal document that offers optimal protection to all parties. With a template Shareholder Agreement, if something goes wrong, the costs and implications for both the shareholders and business alike could be serious.
When Should I Use a Lawyer Instead Of A Template Shareholder Agreement?
There are several factors to consider when determining whether a template Shareholder Agreement will meet your needs or whether you should use the services of a solicitor. These include:
- How complex the shareholder arrangements are.
- How much flexibility is required within the Agreement.
- Whether you would prefer enhanced protection.
If you use the services of a solicitor to draw up your customised Shareholder Agreement, you will also receive advice tailored specifically to your business needs. That is something that cannot be achieved when you use a template.
We have an excellent team and you can contact us at Carter Bond Solicitors on 020 3476 6751 or by email info@carterbond.co.uk
Disclaimer: This note comprises the view of the author at the time of writing. This note is not a substitute for legal advice. Information may be incorrect or out of date and may not constitute a definitive or complete statement of the law or the legal market in any area. This note is not intended to constitute advice in any specific situation. You should take legal advice in specific situations. All implied warranties and conditions are excluded, to the maximum extent permitted by law.
