Why you need a Shareholders Agreements

Welcome to the latest episode of our insightful podcast, where we delve into the world of shareholder agreements. Join us as we uncover the significance of these agreements for both lawyers and entrepreneurs alike. Our esteemed guest, Hammad Naveed, a senior lawyer and corporate company expert, shares his vast experience and expertise in this area. Discover why shareholder agreements are vital for establishing clarity, mitigating risks, and ensuring smooth business operations. From defining ownership stakes to addressing share transfers, dividend distributions, and decision-making processes, we explore the crucial elements covered in these agreements. Learn how shareholder agreements function as a business will, outlining key provisions to handle various scenarios such as the unfortunate event of a shareholder's passing. We also shed light on the intricate dynamics between shareholders and directors, emphasizing the differences in their roles and the necessity of director service contracts. Furthermore, we examine the possibilities of forced share sales, drag-along and tag-along rights, and even explore an unusual clause involving lottery winnings. Whether you're a legal professional or an entrepreneur, this podcast will equip you with invaluable insights and actionable takeaways for navigating shareholder agreements successfully. 

Click through each chapter to unlock the power of strategic agreements to drive your business towards long-term prosperity.

(0:00) Introduction to Shareholders Agreement

(1:07)  What is a Shareholders' Agreement

(4:03) Death of a Shareholder

(6:11) Transfer of Shares

(7:25) Director vs Shareholder

(9:19) Director's Service Agreement

(11:02) Selling Shares