The Law and Practice of Shareholders' Agreements

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Description
A shareholders' agreement is a contract between the shareholders of a company, separate from and additional to a company's articles of association. Shareholders' agreements deal with both the relationship between the share- holders themselves and that between the shareholders and the company. The company itself may or may not be a party. Companies possess legal personality and are regulated by an ever-expanding legislative code which makes it important that shareholders enter into shareholders' agreements to help control their own business destiny. The regulatory background makes share- holders' agreements complex and distinguishes them from some other types of contract.
Company law plays the role of constitutional law in the society formed by the shareholders, directors and creditors of a private company. The shareholders' agreement aims in part to replace certain relevant rules of company law, in particular the principle of majority rule. A shareholders' agreement lies at the confluence of company and contract law and consequently involves issues of significant legal interest, such as interpretation and statutory exclusions.
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Contents
Preface
Table of Cases   
Table of Statutes   
Table of Statutory Instruments   
Chapter 1 Shareholders' agreements and company law
Introduction 
Company structure
The statutory contract   
The articles and a shareholders' agreement
Summary of basic shareholder rights without a shareholders' agreement  
Shareholders and a shareholders' agreement  
Chapter 2 Types of shareholders' agreement   
Introduction
Joint venture agreements   
Combining existing businessescreating a new business   
Venture capital   
Quasi-partnership company agreements (Precedents 6 and 7)
Minority protection agreements   
Informal and implied agreements   
Pooling agreements   
Express voting trust agreements    
Employee Shareholders and shareholders agreements
Shareholders' agreements and the buy back of employee shares
Public Private Partnerships
Chapter 3 The formation of a shareholders1 agreement legal issues   
Introduction contractual considerations
Formalities   
Offer and acceptance   
Consideration   
Intention to create legal relations   
Privity and third parties
Certainty and interpretation   
Chapter 4 The company and the shareholders* agreement: legal issues   
Articles of Association  
Shareholders' agreements   
Priority   
Shareholders and parties   
Directors as parties - special considerations
Promoters   
Pre-incorporation contracts   
Chapter 5 Minority protection   
Protecting a minority by contract or in the articles   
Class rights   
Minority protection by the courts   
Forms of action by minority shareholders   
Investigations   
Chapter 6 Enforcement and termination of shareholders' agreements: the law   
Introduction   
The enforce ability of shareholders' agreements as contracts   
Severance in shareholders' agreements   
Leaving the company   
The enforce ability of restrictions on the transfer of shares   
Termination   
Pre-insolvency remedies: insolvency; winding up; liquidation   
Voluntary liquidation   
Wrongful trading   
Chapter 7 Competition issues   
Introduction   
EC competition law   
UK competition law   
Chapter 8 Joint ventures: practice   
Introduction   
Joint venture: structural issues   
Non-corporate joint ventures   
Corporate joint ventures   
Financing and capitalisation   
Management of the joint venture company   
Deadlock   
Restrictions on the shareholders   
Share transfer provisions   
Assignment and the joint venture agreement   
Termination of the joint venture   
Employment issues and the joint venture
Taxation issues 
Accounting issues   
Chapter 9 Venture capital: practice   
Venture capital   
Venture capital: meaning   
Structural issues   
Management of the venture capital company   
Warranties   
Conduct of the affairs of Newco   
Exit strategies   
Share transfers and pre-emption rights   
Tax considerations   
Competition and accounting issues   
Chapter 10 Quasi-partnership agreements and minority protection: practice   
Introduction
Quasi-partnership companies   
Structuring and financing the company  
Minority protection agreements   
Appendix: Precedents   
Precedent 1: Joint venture agreement   
Precedent 2: Articles of association for use with joint venture agreement
Precedent 3: Option agreement   
Precedent 4: Investment agreement
Precedent 5: Articles of association for use with investment agreement
Precedent 6: Shareholders' agreement   
Precedent 7: Articles of association for use with shareholders' agreement
Precedent 8: Multi party shareholders' agreement
Precedent 9: Articles of association for use with multi pary shareholders' agreement
Index   
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Author's Details
Katherine Reece Thomas BA (Oxon), LLM (Cantab), Solicitor (Non-practising), Senio Lecturer, Deputy Head of Academic Programmes, The City Law School, City University, London
Christopher Ryan LLM, Barrister and Solicitor (NZ), Progessor of Law, Associate Dean International, former Head of Academic Programmes, The City Law School, University, London
David Baylis, M A (Cantab), Partner, Norton Rose