Accountants at Brentwood-based M J Bushell are reminding businesses of the benefits of drawing-up a water-tight Shareholder’s Agreement, amid concerns that disputes between directors and shareholders can quickly spiral out of control if businesses have not prepared for all eventualities.
M J Bushell, a dynamic accountancy firm widely experienced in advising businesses ranging from start-ups and sole traders to multinational companies, is urging businesses to “set in stone” what might happen in the event of a dispute at the earliest possible opportunity.
Dan Sayers, Director at M J Bushell, said that Shareholder’s Agreements could help to significantly minimise the chance of disputes arising in the first place.
“Nobody goes into business expecting things to go wrong, but unfortunately disputes between shareholders can and do happen – and even the smallest arguments can pose big problems for a business if things get ugly,” he said.
“A Shareholder’s Agreement can set in stone numerous practical rules for the company and its shareholders to abide by from the very outset, ensuring that everyone knows where they stand.”
Dan said that Shareholder’s Agreements help to provide answers to many of the stressful questions which tend to arise if directors find themselves at loggerheads – but that these documents can also have a number of other day-to-day benefits for businesses, too.
“A sound Shareholder’s Agreement should include details of shares, share prices and restrictions on selling, who holds the most power in a company, what happens if a shareholder leaves and who they can transfer shares to. All of this information is not only useful in the event of a dispute, but is also handy to have in writing to aid with the day-to-day running of a business,” he said.
In the event that a dispute does arise, Dan said that businesses ought to appoint an expert accountant to assess the situation immediately by acting as a neutral adviser who can help to alleviate any tension or further problems.