Google Adwords 0808 278 1398 Bing Ads 0808 274 4482

Are the company’s directors bound by the shareholders agreement when they make decisions?

As a director, you must run the company in accordance with the company’s articles of association and company law. The articles will set out what responsibilities and powers the directors have, how decisions are taken and so on. Your duties under company law include promoting the success of the company while treating shareholders fairly.

If you are also a shareholder who has signed a shareholders agreement, then you are separately bound by that agreement.

Problems can arise if these two sets of obligations conflict. If so, company law and the company’s articles of association will normally take precedence. If you find yourself in this sort of situation, you should take legal advice.

Related FAQs

Have a question or need some help? Call us today on 08082747557

For free first advice when you want it,
fill in the form below

Please let us know you are not a robot

Your local legal experts


Why QualitySolicitors?

With QualitySolicitors your first initial assessment is free, so you can call us without worrying about being charged for a call you might not have actually needed to make. And because we place our clients are at the heart of everything we do, we make these five customer service promises to make sure you'll feel properly looked after.

This is why, in the first instance, most people looking for legal help in relation to a 'Home And Property' call QualitySolicitors for a Free Initial Assessment over the phone before requesting our Ask the Legal Expert service; which is an introductory 45-minute face-to-face consultation for £99.