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Updating a shareholders’ agreement as a business grows

Status
Ongoing
Outcome
Agreement in final drafting

A family business is bringing in new investors. We are restructuring its shareholders’ agreement so control, exits and dividends are clear for everyone.

The matter

A family-owned business is bringing in two outside investors to fund its next stage of growth. Its original shareholders’ agreement never anticipated new shareholders.

What we are doing

We are reviewing the existing agreement with the founders and drafting a new one covering voting rights, board seats, dividend policy and what happens if a shareholder wants to leave.

Where it stands

Terms have been agreed in principle, and the final agreement is being prepared for signature.

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