Company Formations and Shareholder Agreements
Gowen & Stevens Company & Commercial department has advised many clients on both the advantages and disadvantages to forming a limited company. As with many things in life, the formation of a company is a relatively simple task; it is how it is formed and the nature of the company that may make a crucial difference.
There are many questions that need to be answered:
- What is the most appropriate type of company for the task to be undertaken?
- If a company limited by shares is incorporated, who should hold the shares and how many?
- Should they all be of the same class?
- Who should act as directors? Will they be the same individuals as the shareholders?
- Do those who are appointed as directors understand the obligations they are assuming?
Gowen & Stevens will guide you through these difficult questions providing you with the benefit of experience that we have gained over many years. We can advise you as to whether or not it would be advantageous for the shareholders to enter into a Shareholders’ Agreement.
Such an agreement may regulate voting rights and the transfer of shares, or ensure there is an agreement on the major decisions a company will take. We can prepare such an agreement tailored to your requirements.
After discussion, it may be that another form of structure is more beneficial to your particular circumstance. Our knowledge will ensure that you make the right decision.
