The Law and Practice of Shareholders' Agreements 4th ed
Published: October 2014
Publisher: LexisNexis Butterworths
Country of Publication: UK
A shareholder agreement is one of the most important documents a privately owned company can have. They provide a method for:
- Resolving shareholder disputes
- Preventing the personal circumstances of one shareholder affecting the company or other shareholders
- Provide for the scope of shareholders powers
- Define the procedures and limits within which the company operates
- Provide clarity and certainty to shareholders about what can and cannot be done and what happens if there is a dispute if things go wrong.
Newly formed companies often do not worry about having an agreement. Optimism is high and everyone is getting along well. It is only as the company grows and matures that problems can begin. Interpersonal difficulties, life changes (death, divorce), financial difficulties (especially the threat of insolvency) can all be mitigated with a shareholders agreement which deals in advance with that scenario.
This popular, fully-updated title explains the law on shareholders agreements in a clear and comprehensible style. It guides the reader through a typical transaction, highlighting the commercial issues facing the client and ultimately the solicitor as draftsman. It examines how a shareholders agreement can be unravelled in the event of insolvency or other reason for termination.
New Content for the 4th Edition
- Enterprise and Regulatory Reform Act 2013 – gives shareholders the power to vote on directors pay
- Developments in the area of Derivative Actions (a claim brought by a shareholder against a companys directors, in the name of and for the benefit of the company).
- New content dealing with the law in various commonwealth jurisdictions e.g. Hong Kong, Canada, New Zealand
- A list of substitute clauses to help customers adapt the precedents which are included in the title
- Discussion of the impact of the provisions of the Bribery Act 2010 on Shareholders Agreements
- New analysis on tax in this area.
- Employee shareholder status and the legal and practical effects of this development.
- International element of Unanimous Shareholder agreements and possible assistance in the UK.
- Jackson costs reforms and its effects on disputes involving shareholders.
- Public private partnerships and the impact the proposals.