Partnership and shareholder agreements
.Setting up a business with others is exciting, but without a legally binding agreement in place, disputes over ownership, profits, or decision-making can put everything at risk. QualitySolicitors' specialist business solicitors draft clear, comprehensive partnership agreements and shareholder agreements that protect every party from the outset.
What Is a Partnership Agreement?
A partnership agreement is a legal document that governs the relationship between two or more people running a business together. It sets out each partner's rights, responsibilities, profit share, and what happens if a partner leaves, retires, or dies.
In England and Wales, if you operate as a business partnership without a written agreement, the default rules under the Partnership Act 1890 apply — rules that are often unsuitable for modern businesses. A bespoke partnership agreement avoids this.
There are several types of partnership to consider:
- General Partnership — all partners share equal responsibility for debts and management.
- Limited Partnership (LP) — at least one general partner and one limited partner whose liability is capped at their investment.
- Limited Liability Partnership (LLP) — partners have limited personal liability, similar to a company structure.
Our solicitors will help you identify the right structure and draft an agreement that reflects your business goals.
What Is a Shareholder Agreement?
A shareholder agreement is a private contract between the shareholders of a limited company. Unlike the company's Articles of Association (which are public), a shareholder agreement is confidential and can cover far more detail.
A well-drafted shareholder agreement typically covers:
- Share ownership and voting rights — who holds what percentage, and how votes are weighted.
- Capital contributions — how and when shareholders invest further funds.
- Dividend policy — how and when profits are distributed.
- Dispute resolution — a clear process for resolving disagreements without going to court.
- Exit provisions — what happens when a shareholder wants to sell, retire, or is forced out (including drag-along and tag-along rights).
- Restrictions on share transfers — preventing shares being sold to unwanted third parties.
Without a shareholder agreement, your company's default rules may leave you exposed. Our business solicitors ensure your agreement is tailored, enforceable, and future-proof.
Why You Need a Solicitor to Draft Your Agreement
Template agreements downloaded online are rarely suitable. They may not reflect the latest UK law, they won't account for your specific circumstances, and they can leave dangerous gaps that only become apparent when something goes wrong.
QualitySolicitors' business lawyers:
- Explain your options in plain English — no confusing legal jargon.
- Identify risks you may not have considered — such as what happens on the death or bankruptcy of a partner.
- Draft agreements tailored to your business — not off-the-shelf documents.
- Act quickly — so your business isn't delayed waiting for legal paperwork.
We work with start-ups, SMEs, and established businesses across England and Wales.
So if you’re looking for expert legal advice for your business, call us today on 08082747557.