No one likes to contemplate falling out when everything seems in balance and everyone is happy. The result is often that little attention is given to the contractual arrangements surrounding the management of the company, the relationship between the shareholders and the ownership and transfer of the shares. Quite often some investment of time and money in a specially drafted shareholders’ agreement and articles of association may help avoid or mitigate a multitude of problems further down the line.
We have experience of both drafting shareholders agreements and in dealing with disputes between shareholders typically when the arrangements put in place have left much to be desired. The particular shape of the necessary arrangements will depend greatly on the circumstances. Specific provisions concerning, among other things, financing, management, dividend policy, the procedure surrounding the issue and transfer of shares, share valuation and deadlock will often be very helpful in helping a new company to move forward and deal with problems and irritations that often accompany or follow some success.