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Partnership and Shareholders’ Agreements

If you are setting up in business with someone else it is imperative that the rights and obligations of those involved are clearly set out and, depending on your business structure, it is likely that you will need a partnership agreement or a shareholders’ agreement.

These types of agreement will govern the relationship of partners in a partnership or shareholders in a company and might cover, amongst other things, the introduction of capital into the business, restrict what each party is able to do in terms of binding the business and restrict who the parties can transfer their share in the business to.

It is always the hope and expectation that a business relationship flourishes but it is not always the case and a well drafted partnership or shareholders’ agreement at the outset can help avoid costly and time consuming disputes in the future.

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