2017 New Year Resolutions – Do you have a Shareholders agreement or partnership agreement? Should you? Yes!
January 11, 2017
Many businesses are set up with a business partner or shareholder. Other businesses will receive funding from friends, family or other third parties.
When running a business you can be very busy dealing with day to day business trading and can easily forget to put in place the contract that details who owns the business and the terms on which any business funding has been put in place.
One of the most common legal issues that we deal with is what happens when a business partner wants to leave the business or what happens when there is a dispute with a business partner or funder. More often than not, there is no contract in place with the business partner or funder and no mechanism as to how to buy that partner out or to deal with any disputes.
This can result in lengthy and costly negotiations between business partners and unsatisfactory outcomes due to the lack of attention to detail at the time of setting up the business. Even if you have been running your business for many years without these agreements you can still get an agreement done now and we strongly advise you to do so.
The information contained in this article is intended for general guidance only. It provides useful information but it is not a substitute for obtaining legal advice as the articles do not take into account specific circumstances. So do please Contact US for legal advice on the issues raised.