With COVID-19 continuing to have a significant impact on all aspects of business, many of which have been unforeseen, a shareholders’ agreement has never been more important.
These agreements can provide for many eventualities, while the absence of a shareholders’ agreement opens up more potential for costly disputes and disagreements between shareholders.
Whether you’re a minority or majority shareholder in a company, it’s important to consider drawing up and implementing a shareholders’ agreement.
Dave Paterson, Partner in the Corporate Law team at Blacks Solicitors, discusses why businesses should implement a shareholders’ agreement and the benefits that will be returned.
‘Good Leavers’ vs. ‘Bad Leavers’
In Owner Managed businesses, a limited company’s shareholders and directors are often the same people. If a director or shareholder leaves the company, then the remaining shareholders may not want them to keep hold of their shares or have to pay market value to repurchase
Business Insider has hired Steven Perlberg as a media correspondent.
Perlberg is currently a freelance reporter based in Berlin writing about media, politics, business, culture, and other things.
He previously worked for Business Insider, BuzzFeed and The Wall Street Journal.
At the Journal, he covered digital media, marketing and advertising. At BuzzFeed, he covered the intersection between the media and President Donald Trump.
Perlberg previously interned at the St. Louis Post-Dispatch, where he covered the health beat, and at ThinkProgress, where he wrote about politics. He graduated from Washington University in St. Louis with a B.A. in political science and anthropology.