The death of a shareholder is not something anyone wants to have to consider but extremely relevant in the current climate.
It is also likely that whilst most companies will seek to take a pragmatic and realistic approach post COVID-19, it is an unfortunate inevitability that for some directors and shareholders the disruption will lead to dispute and disagreement.
So if you are a director or shareholder and you envisage fundamental disagreement with fellow shareholders or directors on how the business should be managed going forward, what options are available?
From a legal perspective, the best way shareholders can control and protect their interests is by having an agreement in place to regulate their relationship – this agreement will set out what happens to a shareholder’s shares in the unfortunate event of a death and should also include provisions that specifically set out how disputes between shareholders should be resolved. This is particularly important in companies where there are two shareholders who each own 50% of the shares.
If you are concerned that you do not have any such agreement in place or that the Covid 19 crisis is likely to effect you as a shareholder or director then please contact Wollens commercial expert Dominic Hollingsworth.
Our commercial team offer a range of business support find out more here.
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