Industrial Manufacturer - Shareholders Agreement
Category : Commercial work
Quad Legal prepared a shareholders’ agreement between our client and some incoming shareholders in an industrial business.
Our client had sold a majority stake in the business but wanted to retain a minority interest. They wanted to ensure that they were able to protect their ongoing investment.
We drafted a shareholders agreement which:
- clearly set out the governance framework for the company moving forwards including rights to appoint directors
- provided certain shareholder veto rights in favour of our client in respect of key decisions impacting the business – capital expenditure, asset sales, financing
- ensured that our client had an appropriate level of control over who their long term business partner would be through drafting appropriate pre-emptive rights clauses, events of default triggers and change of control consent requirements
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