Short answer? A Shareholder Agreement can be useful for any company.
So why doesn’t every company have one? Why doesn’t a Shareholder Agreement come as standard when a new business opens a bank account? Or orders its first business cards?
Why doesn’t every person have a Will? We know that it creates more hassle, takes more time and incurs greater expense to srt out someone’s affairs if they don’t leave a Will – and yet, most individuals never get round to making a Will.
It is the same situation with Shareholder Agreements. They are important, but probably on the non-urgent list for most business owners….. until it is too late.
Perhaps, also the ins-and-outs of Shareholder Agreements are not widely understood, either by those who own shares in a company or by the business advisers that they turn to for support and advice.
The know-how of Shareholder Agreements is limited to a too narrow band of professional advisers (such as company lawyers, commercially astute accountants and business mentors) who have seen what happens when things go wrong too many times before and are the first to mention a Shareholder Agreement to their company owning clients.
Put simply, too few people who are in business understand the “point of a Shareholder Agreement”.
If you are ready to put in place a shareholder agreement contact us to get started today.