If you’re thinking of going into business with others, you need to protect both the new enterprise and your own interests by putting in place a partnership or shareholder agreement. A well-drafted agreement will govern how the business is to be run; specify how decisions will be made and who can enter into legally binding contracts. It will also clearly set out rights and obligations as well as protecting partner or shareholder investments. At Hodders Law, our experienced legal practitioners will take the time to understand your business and put together an agreement that reflects your commercial objectives and protects your interests.
Running the business
Being clear on who has responsibility for different aspects of running the business and making decisions is critical and can be addressed by the production of a well-written agreement. Role clarity can save your business time and money by ensuring that there are no overlaps or gaps in duties and responsibilities. Let us put our years of experience of working with SMEs to use by helping you put in place an agreement that is fully fit for purpose.
Choosing the best financial structure
Ensuring that you and your co-owners are on the same page when it comes to finances and risk is important, especially when making big business decisions. A partnership agreement will set out which partner owns which assets, who has the right to an income, and responsibility for any losses. A shareholder agreement will outline shareholdings, policies on raising capital and the issue of dividends. We will make sure that your financial objectives are accurately and transparently reflected in your agreement.
Handling disputes and leaving the business
No-one goes into business expecting things to go wrong but a binding agreement outlining how potential disputes will be handled will give you peace of mind. It’s a fact of life that people leave businesses, and in a partnership, it is really important to expressly state what will happen if one of the partners wishes to exit the venture. Equally, a shareholder agreement can give priority to existing shareholders to buy shares from other shareholders. We can advise you on the best way to handle these often sensitive matters in a professional and commercial manner.