Drafting a shareholders' agreement
A strong business starts with clear agreements between shareholders. As a shareholder, you want certainty about your rights, obligations and the direction of the company. A shareholders' agreement provides that certainty. At Westvaer, we understand that every agreement requires a tailored approach. In this text, we explain what a shareholders' agreement is, why it is crucial and how we can support you in drafting it.
What is a shareholders' agreement?
A shareholders' agreement is a contract that outlines the arrangements between shareholders. This document provides flexibility by addressing additional agreements that are not included in the articles of association. Examples include:
- admission of new shareholders: who is allowed to join and under what conditions?
- agreements on mandatory offering of shares in special circumstances;
- strategic decision-making: what voting ratios apply for significant decisions?
- arrangements regarding the valuation of shares;
- exit arrangements: under what conditions can a shareholder be required to sell their shares?
- dispute resolution procedures: how do you resolve conflicts without harming the company?
The advantage? The content is private and tailored to the unique situation of your company.
Why is a shareholders' agreement important?
Conflicts can affect any company, but the impact is most significant when shareholders are in opposition. A well-drafted shareholders' agreement prevents legal disputes and provides clarity on important matters such as voting rights, dividend policy, exit strategy, obligations to offer shares and more.
Did you know that in 70% of shareholder conflicts, the cause is missing or incomplete agreements? A carefully documented agreement minimizes risks and protects the continuity of your business.
Drafting a shareholders' agreement: do it yourself or outsource?
While it is possible to draft a shareholders' agreement on your own, in practice, many entrepreneurs overlook critical details. Without legal expertise, there is a significant risk that the agreement will be incomplete or fail to address future challenges. Additionally, every shareholders' agreement must be carefully aligned with the contents of the articles of association.
The benefits of hiring an expert:
- Legal certainty: the specialists at Westvaer know exactly which provisions are essential. They ensure that you do not inadvertently make agreements that are legally untenable.
- Future-proofing: a professional considers the bigger picture. Is your company growing? Are you being acquired? The agreement is tailored to accommodate these scenarios.
- Time and stress savings: you can focus on running your business while we ensure the document is robust.
At Westvaer, we combine legal expertise with a personal approach. Our goal? An agreement that is not only comprehensive but also perfectly aligned with your company's objectives.
Three frequently asked questions about shareholders' agreements
Here we answer some frequently asked questions:
What should be included in a shareholders' agreement?
The content depends on your situation, but the most common components are: voting rights, dispute resolution, admission conditions, exit strategies and dividend policies. At Westvaer, we help you set priorities and ensure nothing is overlooked.
Is a shareholders' agreement mandatory?
No, a shareholders' agreement is not mandatory. However, many entrepreneurs choose to have one as it provides clarity and protection in situations where the law or articles of association do not offer solutions.
What does it cost to draft a shareholders' agreement?
The cost depends on the complexity of your business and the agreements you want to make. At Westvaer, we offer transparent pricing and provide upfront insight into the costs, so you are never faced with surprises.
Do you have any other questions? Our experts are ready to assist you.
An investment in your business
A shareholder agreement is more than just a document; it’s a strategic tool to protect your company and ensure smooth collaboration among shareholders. At Westvaer, we make sure your agreements are not only legally sound but also future-proof.
Why choose Westvaer?
At Westvaer, we understand the importance of a well-drafted shareholders' agreement. Our clients value us for:
- personal advice: We take the time to understand your situation and offer forward-thinking solutions;
- legal expertise: Our specialists have extensive experience and stay updated on the latest laws and regulations (international and in The Netherlands);
- clear communication: Minimal legal jargon, providing understandable and professional explanations.