Why do today what you can put off until next year? Rather like making a Will, creating a Shareholder Agreement is important, but it rarely seems urgent. It can be costly; you have other priorities; it’s a bit depressing (who likes to think about potential problems?) and there’s always something else demanding your time… then suddenly the undertaker is at your door.
Unfortunately, when things go badly in business and the lawyers start appearing, you can’t just slip away to a peaceful death and leave other people to pick up the pieces.
Whilst a Shareholder Agreement does not seem like a priority when you start in business, especially when funds are limited, it is a good idea to put one in place sooner rather than later, especially when a company has built up a customer base and accrued real value.
As soon as the shareholders have something valuable to lose, it becomes sensible to have a safety net in place should the relationship change for the worse. Or to borrow a phrase from the music industry: “Where there’s a hit, there’s a writ!”
If you are ready to put in place a shareholder agreement contact us to get started today.