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Shareholders Agreement, have you got one?
Have you got a Shareholders Agreement in place? If not now might be a good time to set one up.

If you are an owner managed business with a small number of shareholders, you should definitely have one.

This will dictate how the company can restructure if something happens that means that the business has to change.

People come together to set up businesses with the best of intentions. It may be with friends, old work colleagues, spouses, other family members and people believe that they will never fall out with their fellow shareholders. But people do fall out, working relationships change, some people want to leave a business when others may not be ready for them to go. In the worst of circumstances people may get incapacitated or even die (sorry to be bleak).

You should set one up when the business starts, but if you haven’t it is best to do it as soon as possible, when everyone is getting along or is happy to agree to the terms.

If you have a structure in place that dictates how change happens this will save a lot of time and heartache and can even save the time and cost of resolving things through the Courts.

As the old adage says “expect the best and plan for the worst”.

https://www.linkedin.com/posts/ian-richards-outsourced-finance-director-uk_sme-legaladvice-covid19-activity-6656115021153648641-aSrP

14th April 2020