Moorcrofts Means Business
Welcome to 'Moorcrofts Means Business' podcast, where our speakers will be discussing legal topics to help you run your business as efficiently as possible. Topics will range from buying and selling a company in the UK or abroad, legal technology matters from open source licences through to software and hardware contracts and IP protection, leasing a commercial property and the very thorny and ever evolving landscape of employment law and contractual services. All our podcasts are for general information and are not to be taken as bespoke legal advice.
Moorcrofts Means Business
Understanding shareholder relationships
Welcome to another episode of the Moorcrofts Means Business Podcast!
In this episode, members of our corporate team, Adam Forder and Heather Stewart, explore the intricate world of shareholder relationships.
They cover several critical questions:
- What governs shareholder relations in a company?
- What happens if you fall out with another shareholder?
- Is it really necessary to create a formal shareholders’ agreement?
- Does having a shareholders’ agreement mean I don’t trust my business partner?
- At what point should you consider formalising shareholder relations, and is it now too late?
Adam and Heather discuss these questions and much more.
Key topics covered:
- Understanding Shareholder Relationships:
- Explanation of the structure and importance of maintaining good shareholder relationships for long-term stability and growth.
- The Companies Act 2006:
- Overview of the key legislation governing company law in the UK.
- Principle of majority rule and types of shareholder resolutions.
- Exception to majority rule: unfair prejudice and its implications.
- Articles of Association:
- Definition and role of the articles of association in regulating a company's internal affairs.
- Differences between model and bespoke articles.
- Importance of tailoring articles to meet the company’s specific needs.
- Shareholders' Agreement:
- The purpose of a shareholders' agreement and how it complements the articles of association.
- Benefits of a well-drafted shareholders' agreement in managing relationships and expectations among shareholders.
- Real-life case study illustrating the importance of having a shareholders’ agreement.
- Drafting a Shareholders' Agreement:
- Key considerations and typical contents of a shareholders' agreement:
- Business management and future-proofing.
- Share matters and rights/obligations of shareholders.
- Dispute resolution mechanisms and founder protections.
- Timing for creating a shareholders’ agreement: ideally at incorporation, but possible at any time before an issue arises.
- Key considerations and typical contents of a shareholders' agreement:
This episode offers valuable guidance to help you navigate shareholder relationships with confidence, whether you're just starting out or looking to refine your existing processes.