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Shareholders are the financial backers of a company. They invest in the company by buying shares. By becoming a shareholder you will have rights but also some duties. Some decisions can only be made by the shareholders for example when the company wants to change its’ name or remove a director from office. Shareholders sometimes have different rights, depending on the class or type of shares that they own. An important document that defines these rights and duties is the shareholders agreement. You may want us to take a look at your agreement or to draft one for your company if you are only starting out. If you want to read more about shareholders take a look at our guide. It has heaps of useful information.

The content on elXtr has been prepared by LHS Solicitors. It’s intended as guidance only and not to be regarded as a substitute for consultation with one of our solicitors, since every case will ultimately turn on its own particular facts and circumstances. We recommend that you use our materials as your starting point and be aware that you sometimes have to follow a set procedure before taking any action, especially in an employment context. If you are in any doubt, we’d suggest that you get in touch with us and we’ll talk you through your options on how to get the right legal advice.