It’s not until I exited my own agency that I realised that Shareholder’s Agreements were not a legal requirement in the UK. We’d always had them in my businesses, so I just assumed that they were something everybody had.
It wasn’t until I started talking to other businesses that it registered that some agencies operate without a shareholder’s agreement.
Shareholder’s agreements outline shareholders’ rights and obligations which provides protection for each shareholder. They also protect and govern the management of the company.
You might not think you need a shareholders agreement when one day you sit in a pub with your best mate and decide to start an agency. Ten years on, and with 10 times as many people, you might think differently. You still might be best mates, but what happens if one of you wants to leave, or is taken ill, or you do fall out?
Something in writing that outlines what happens to the shares in these situations cannot always solve shareholder issues, but it sure make things clearer and easier.
However well things are going for you right now, if you don’t have a shareholders agreement I recommend you consider putting one in place.
STANDSTILL agencies have shareholders
STANDOUT agencies have shareholders agreements
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