A shareholder agreement is an agreement between the shareholders of a company where the shareholders agree certain matters in relation to the management and operation of the company.
Shareholder agreements deal with important matters relating to the company such as the conduct of its business, or payment of dividends, and afford certain protections to shareholders who are in a minority position or who do not have an active involvement in the day-to-day operation of the company.
Advantages of a shareholders agreement
Shareholding agreements can provide the following benefits to companies;
- Maintain a degree of confidentiality of the internal affairs of the company.
- Gives minority shareholder protection.
- Provide a degree of certainty and clarity to the future operation of the business.
Healy O’Connor Solicitors LLP provide advice in relation to all aspects of negotiating and completing a shareholders agreement and related documentation that need to be taken into account in advising on and drafting a shareholders agreement.