Small companies are often described as ‘quasi-partnerships’. That is because the owners are the day-to-day operators and know what is going on. When it is operating well, it is great. But sometimes minority shareholders can feel disadvantaged. They can suffer an ‘unfair prejudice’ which, if enough to satisfy the requirements of section 994 of the
If you are a serious active shareholder in business, it is not compulsory to have a shareholders’ agreement, unlike, for instance articles of association, which all companies have, usually in a very standard form. So why have one a Shareholders’ Agreement for your company? It may be worth considering the following reasons very carefully: