Shareholders Agreement

📊 Why Use This Shareholders Agreement?

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Essential for Limited Companies

Critical for any UK limited company with multiple shareholders - from startups seeking investment to family businesses protecting inheritance. Required when bringing in investors, co-founders, or converting from sole trader. Without this, default Companies Act 2006 rules may not protect minority shareholders or founder control.

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Protects All Investors

Vital for angel investors, venture capitalists, and minority shareholders who need tag-along and drag-along rights. Prevents majority shareholders from selling without including minorities. Establishes pre-emption rights so existing shareholders get first refusal on new shares, preventing unwanted dilution or hostile takeovers.

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Controls Share Transfers

Prevents shares being sold to competitors or unsuitable parties. Essential when you need to approve who becomes a shareholder - particularly important for professional services firms, tech startups with IP, and family businesses. Includes compulsory transfer provisions for bad leavers, protecting the company if a shareholder becomes bankrupt, dies, or breaches terms.

📚 Official Resources & Legal References

🏛️ GOV.UK - Company Formation ⚖️ Companies Act 2006 📈 FCA - Share Regulations 📊 ICAEW - Shareholder Rights 💷 HMRC - Share Transfer Tax 📝 Companies House

Agreement Builder

🏢 Company Details

Company Name *

Company Number *

Registered Office *

Agreement Date *

Share Capital (£) *

Total Shares *

👤 Shareholder 1 Details

Full Name *

Address *

Number of Shares *

Share Class

👤 Shareholder 2 Details

Full Name *

Address *

Number of Shares *

Share Class

📋 Transfer & Rights Provisions

Pre-emption Rights

Drag-Along Rights

Tag-Along Rights

Compulsory Transfer (Bad Leaver)

Board Appointment Rights

Dividend Policy

Shareholders Agreement Generator