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Like all (most) marriages, you set out with the best of intentions, certain that your future together will be a long, happy and fruitful one. Having a written agreement about how you’ll behave seems unnecessary, and just the sort of thing to take the romance out of the relationship.
Yet this is exactly what we would recommend. Every business should have either a Shareholder or Partnership Agreement that documents exactly what each of the parties rights and responsibilities are. These documents make it clear who owns the business, and what each of the shareholders / partners can expect in return.
This also allows you to have different arrangements for later investors. For example, it can exclude people from certain voting rights, or vary the proportion the dividends they get paid on their investment.
More importantly, Shareholder & Partnership Agreements document what is to happen in response to certain Trigger Events. For example:
- The death of a shareholder. Do you want her shares to automatically revert to her husband, who you’ve always hated?
- Similarly, in a divorce, a directors shares are counted in his assets.
- A shareholder wants to retire. What are the arrangements or restrictions for him to sell his shares to the other owners?
For Partnerships, a written agreement is essential. Without it, the Partnership Act 1890 applies in full, and can have serious implications for all of the partners – especially in the event of any wrong-doing by just one of them.
Like all essential legal documents in a business, it’s also important that Shareholder and Partnership Agreements are regularly reviewed – we suggest this is done at the same time as your AGM. This provides you the opportunity to do things like adjust the value of the business that will be used in response to a Trigger Event, or update the details of any life insurances the business owners have.
If your business doesn’t have a Shareholders’ or Partnership agreement, or if it’s been several years since anyone took a detailed look at it, please get in touch, and we’ll talk you through what’s involved.
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“ Having Instructed Peter’s firm in a recent legal matter I have found both Peter & his team highly professional, client centric and a pleasure to deal with. The work required was completed timely, with expert legal knowledge of the subject matter and was very fair on costs. I would highly recommend Peter and his firm. ”
Sarah Patterson Financial Services Professional
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“ I have dealt with Peter Millican on a number of issues relating to Corporate Law in the past and I have always been extremely happy and delighted with the work he has carried out. He has always been very personable and has excellent knowledge in his field. I would highly recommend Peter to any company and would, in no doubt, use him again in the future. ”
Hayley Dunn Sales & Resource Manager
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“ We have worked with Peter on a number of occasions over recent years on a variety of commercial issues. Peter combines quality commercial advice with a strong sense of customer service. ”
Peter Weldon Owner at Peter Weldon & Co
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“ We asked Peter to act as our ‘independent solicitor’ / legal witness on several occasions over the years. He is personable,consistent, reliable and is always willing to adapt his schedule to meet at very short notice when deadlines dictated. Excellent Customer Service! ”
Ros Smith Finance Director at NBSL
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“ Peter is very approachable and I would have no hesitation in recommending clients to him for work we don’t deal with at Beecham Peacock. He provides all kinds of business advice at cost effective rates for individuals through to large organisations. ”
Fiona Ryans Solicitor at Beecham Peacock
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“ I have known Peter and his company for around 1 year now and in that time I have found Peter to be extremely helpful, very professional, always approachable and highly versed in all legal aspects. A very warm and friendly man with a great team around him. Would recommend Peter and his company unreservedly. ”
Peter Bennett Business Development and Print Specialist
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“ I have worked with Peter on a number of occasions over recent years and have always found him to be polite, personable, diligent, honest and trust worthy. He has offered excellent advise and guidance and wouldn’t hesitate to work with him again or recommend him to others. ”
John Barron Director - Finance & Legal Division at Solutions Recruitment
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“ Peter works for SRF on a consultancy basis. He is a superb lawyer, with a great eye for detail. He is meticulous and precise in his work, which is done to the highest of standards. He works in a timely manner and provides excellent client service. He is also a really nice bloke! ”
Andrew Swan Owner, Short Richardson & Forth LLP
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“ Acting as mediator in a commercial dispute between one of Peter’s clients and a third party, I worked with him and his colleague Gaynor and found the interaction extremely professional. In particular, I was struck by Peter’s attention to detail in subsequently formulating the settlement agreement arrived at by the parties. It brought a positive and decisive conclusion to the mediation, which benefitted all concerned ”
Kevin Robson Adding Experience to Businesses
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“ I would highly recommend the services of Peter Millican. I have found Peter and his team to be the utmost professionals who place a high regard on customer satisfaction and have a natural ability to inspire trust and confidence with their clients.
Peter is a true professional and expert in his field of work. I would thoroughly endorse and recommend his company for first class legal advice and training services. ”
Shirley Watson Specialist Public Sector Tender Consultant
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“ Peter is a true expert in his field and I was delighted with the outcome he achieved. Highly recommended. ”
Luke Dunnett Area Manager
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“ Peter isn’t like other lawyers – you expect solicitors to know their stuff and to be thoroughly professional, but Peter and everyone in his firm have a genuine aura of trust about them.
All law firms say that they take customer care seriously, but unlike others, hearing Peter talk about his work, it’s very quick to see that he really does care about his clients. He takes their best interests to heart, and delivers outstanding service right from the first contact.
I have had no hesitation in recommending Peter to anyone needing legal advice in their business. I’ve referred my clients to him on a range of issues from basic debt recovery (consistently handled with tact & delicacy, but still more than 95% successful within just seven days), right up to resolving partnership disputes or negotiating contracts for public/private collaboration. ”
Karl McCracken Director - Client Magnet