Set up a shareholders’ agreement

What are the steps?

1. Create a Shareholders’ Agreement
2. [Optional] Add new shareholders with a Deed of Adherence

What do I need a Shareholders’ Agreement for?

A Shareholders’ Agreement is a contract for company shareholders to govern the relationship between shareholders and the company’s management. Essentially, the purpose of any Shareholders’ Agreement is to serve as a dispute resolution mechanism; investor protection; and confidentiality. 

For more info, see:

Step 1: Create a Shareholders’ Agreement

This will include the important decisions that will decide on how a business will be run. You will first need to confirm which issues the agreement will cover (we have guidelines on that here). Of course, shareholder value will be one of the key items set out in this document as well as the overall ownership of the intellectual property (whether it lays with the company or the individual).  Then, it’s important to agree on who will make decisions (shareholders or directors), as well as how the voting power of shareholders will add up. 

To learn more about what to include in your Shareholders’ Agreement, please read our detailed guide.

Step 2: [Optional] Add new shareholders with a Deed of Adherence

At a later date, you may need to add new shareholders. You can do this with a Deed of Adherence. This document means that those shareholders become signatories to the original shareholder agreement.

Client case study

Paul Sherry from 49 uses Zegal to set up Shareholder’s Agreement that protects the shareholder’s investment in the company.