A Shareholders' Agreement is a legally binding contract between the shareholders of a company. It governs the relationship between the shareholders in order to protect the interests of the individual shareholders as and against each other.
A Shareholders' Agreement is of crucial importance in any company where there is more than one shareholder. It provides a level of protection for the shareholders involved in the company and establish a fair relationship between them.
This Shareholders' Agreement - Protection Majority Shareholders template is designed to protect the interests of the Majority Shareholders (i.e. any person(s) with more than 50% of the issued share capital in the company). This comprehensive Shareholders' Agreement includes clauses dealing with the transfer of shares in the company, pre-emption rights on a transfer of shares where any party to the agreement who subsequently wishes to sell their shares must first offer the shares to the other shareholders, and it also includes a Drag-Along Clause which enables a majority shareholder to force a minority shareholder to join in the sale of a company. Finally, a Confidentiality Clause and a Non-Compete, Non-Solicitation and Non-Poaching Clause have also been included in the agreement to safeguard the interests of the company.
This Shareholders' Agreement - Protection Majority Shareholders is specifically drafted for companies where there are majority and minority shareholders and, either new shareholders are joining the company, or the existing shareholders wish to change the terms of their relationship with one another as shareholders in the company.
This Shareholders' Agreement is fully compliant with the changes introduced by the Companies Act 2006.