Reducing risk of disputes by having a written agreement

The clients successfully put in place a shareholders agreement between themselves and an equity investor to create certainty as to their respective rights and obligations and reduce the risk of disputes arising in the future

  • Reducing risk of disputes by having a written agreement

    We took instructions from two individuals who were shareholders of an IT company.  They were looking to grow their business and were in negotiations with another party for an equity investment into their company in return for a shareholding.  The clients wanted to put a written shareholders agreement in place to reduce the risk of a dispute arising between the parties. They wanted to clarify their respective rights and obligations, and also wanted to ensure that they had protections in place to ensure that they maintained, as far as possible, the decision-making capability in relation to the company.

    We took our clients’ instructions as to the specific terms that they wanted to have included in the shareholders agreement and provided advice on various options they had and possible provisions that could be incorporated.  We also advised on the consequences of including certain provisions and eventualities that could arise in certain scenarios in the future, including possible company buy-out or the death of a shareholder.

    Once we had all the information and instructions we required, we prepared a draft shareholders agreement for our clients.  We then assisted in negotiating the terms of the draft shareholders agreement, and this process also enabled the parties to engage in frank discussions between themselves on critical matters relating to the company.   Once all terms had been agreed, we finalised the shareholder agreement for signature.

    We also advised our clients on updating the Articles of Association of the company to reflect some of the terms that were included in the shareholders agreement, including those that dealt with transfers of shares and pre-emption rights.

The wonderful team at Valens was extremely helpful and walked us through the process every step of the way.

Valens Solicitors wealth of knowledge offered me numerous solutions and supported by their clear and concise explanations I was able to make a well-informed decision.

Thank you to the Valens team. You helped make our dreams come true!

Valens Solicitors’ wealth of knowledge offered me numerous solutions and supported by their clear and concise explanations I was able to make a well-informed decision.

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