How do we get rid of a Shareholder?
Shareholders have rights which are either governed by the Companies Act 2006, a shareholders agreement or the articles of association.
Parting ways with shareholders is a bit like a divorce. Having a shareholders agreement or tailoring your articles of association is like having a pre-nuptial agreement and can help ease the parting of the ways providing for time scales, valuation of assets and when money has to be paid to ease the financial burden on the other shareholders or the company.
But what if we don’t have a shareholders agreement?
The difficulty always comes when you do not have a shareholders agreement and/or the articles of association are silent on the exit of a shareholder.
We come alongside you to advise on the procedural dos and don’t and the right strategy to make the parting of ways as painless as possible.
I am being treated unfairly as a shareholder, what can I do?
As a shareholder you have rights – these may be set out in the Companies Act 2006, a shareholders agreement or the articles of association.
Whether you want to try and resolve matters or look to part ways we come along side you to advise on the procedural dos and don’ts, what you may expect from your fellow shareholders or the company and the best strategy to achieve your desired outcome.
Removing a Director
How do we remove a director?
When business relationships go wrong dealing with the consequences can be difficult – from protecting the bank account, to removing someone from the business.
Very often a director will also be an employee and may also be a shareholder – so there is cross over between company and employment law and the director will have rights under both which can make their removal difficult.
We come along side you with our expertise in both areas to help you navigate these difficulties and minimise the risk of making the consequences worse for you and the business.
Why do I need a shareholders agreement?
A shareholders agreement is a private contract between the shareholders and often the company under which it is agreed what decisions can be made and by whom.
You can also think of a shareholders agreement like a prenuptial agreement – it can set out what happens if the shareholders fall out, want to retire, die, commit any wrongdoings and need to be removed or what happens if you want to add a new shareholder or sell to a third party.
Shareholders agreements work along side the company’s articles of association to form the rule book governing how the company is run.
We come along side you to help you craft a shareholders agreement that is tailored to suit the unique needs of your company and plan for the future.
Employee Share Schemes
How can I reward my employees? What is an employee share scheme?
Giving employees shares or the opportunity to buy shares in your company can be a great incentive. There are several schemes that have been approved by HMRC. They can be complicated to set up and you need to ensure that you choose the right scheme in order to stay within the HMRC rules.
We come alongside you to help simplify the complications and establish the legal framework for you to use to encourage performance amongst your workforce.