Do you have a signed shareholders’ agreement? Can you lay your hands on a copy? Is it up to date and relevant?
What would happen if you or one of your shareholders wanted out of the business? What would happen if you or one of your fellow shareholders were permanently incapacitated and unable to continue working in the business? If one of your shareholders were to die unexpectedly, would you suddenly find yourself in business with his or her spouse? Would that cause difficulties?
Does the business have insurance to cover those possibilities? Who owns the insurance policy and how do you know the proceeds will be used for their intended purpose?
These are all good questions, and business owners should have an equally good answer. Especially if you are in business with one or more unrelated shareholders.
On Wednesday 25 May, the Business Owners Forum will discuss these questions and more. Here’s our panel for this event:
Chris Taylor. Chris is a Senior Lawyer in the Webb Ross Commercial team. Chris has had a hand in negotiating and drafting numerous shareholders agreements for his clients – and he will share some of the tips and pitfalls in this process.
Fraser Hurrell. Fraser is a director of Elevate CA Limited – a company with three unrelated shareholders. Fraser will recount the process he and his fellow shareholders went through in arriving at a robust agreement including what they did well and what they might do differently next time.
The third panelist will be confirmed and posted here shortly. He or she will discuss some of the risks inherent in being in business with unrelated shareholders – and some of the ways you can mitigate these risks.
This event will be held at Elevate CA from 5:30pm to 7:00pm on 25 May. Street address and contact details are here >>>.
As always, Business Owners Forum events are free of charge to attend. Just email Fraser Hurrell >>> before 23 May to reserve your seat – and to join the invite list for future events, enter your details in the boxes to your right.