A shareholders' agreement is an agreement between the owners of a limited liability company that primarily regulates the owners' relationship and cooperation as well as the business purpose of the company. Ownership agreements also form an overall framework for the joint ownership and its settlement.
Many small and medium-sized companies operate without shareholders' agreements. However, cooperation in the form of a company brings with it a wide range of complex issues that can be difficult to grasp without relevant regulation in shareholders' agreements. Lack of regulation can have unfortunate consequences for the company and its owners.
We always recommend that the participants in a company enter into shareholders' agreements. This also applies even if the owners are family members, friends or close acquaintances.
Here are three good reasons to follow our recommendation:
It creates a clear framework for the collaboration and provides a basis for setting expectations at the beginning of the collaboration
It allows for a tailor-made and individually adapted regulation of the collaboration that deviates from the starting point of the Danish Companies Act
It provides an opportunity to safeguard minority owners
If you have a shareholders' agreement that you would like us to review, or if you would like us to help draft a shareholders' agreement for you and your partners, don't hesitate to reach out to us.