Canopy Law > Shareholder Agreements > Investor- shareholder rights

Investor- shareholder rights

In most small private companies an individual will fulfil a number of roles: shareholder, director and also work full time in the company. However, a silent investor, who is not also a director, will not have a legal right to attend directors’ meetings and see the monthly management accounts to check on the progress of his investment. A Shareholder Agreement can correct this and ensure that the investor is kept fully informed, as well as making the ‘full time’ shareholder/director(s) accountable to the silent investor.

The rights given to an investor who is not a director could extend to involvement in the monthly management of accounts, cash flow projections, setting sales targets or preparing the annual business plan.

Find out more

Kindle Edition £4.99

Paperback from £9.95

“A good Shareholder Agreement is like a fence at the top of a cliff, which stops company owners from falling over the edge and into the hands of lawyers who wait in the ambulance parked beside the rocks below.

This book explains in easy to understand language what a Shareholder Agreement does, the common clauses it contains and when it is best to put one in place.”