Shares and Shareholder Agreements

Share Options and Shareholder agreements

Shares and options commonly form part of the benefits package for senior business executives. Every shareholder agreement is different and unique, but most will cover certain key issues, such as the quantity of shares to be granted, the value to be placed on them, any restrictions on sale, and the position of shares and options upon termination of employment.

Disputes arising from Shareholder agreements

Unfortunately, many disputes can arise concerning shareholder agreements. These are frequently triggered by the way in which the agreement is implemented, particularly following termination of employment. Shareholder disputes on termination often involve the sale of shares on departure from the company, frequently because of restrictions regarding the timing of share sales, or to whom they may be sold. Further complications can arise because certain restrictive covenants in the employment contract of a departing executive can also be contained within the shareholder agreement.   

Problems arising from Shareholder agreements

We can identify specific problems contained within your shareholder agreement, articles of association and other documents governing your share holdings and we provide urgent reviews if you are suddenly facing the termination of a contractual relationship. We also frequently advise on the implications of restrictive covenants appearing in shareholder agreements. We are often instructed by clients who wish to ensure their agreements covering options and shares are clearly and fairly drafted, so we can help you to protect your position and avoid disputes at a later date.