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Stakeholders Agreement Template for England and Wales

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Key Requirements PROMPT example:

Stakeholders Agreement

"I need a Stakeholders Agreement for my tech startup with three co-founders and two angel investors, including specific provisions for future funding rounds and a clear exit strategy in case any founder wants to leave by January 2025."

Document background
A Stakeholders Agreement is essential when multiple parties hold ownership interests in a company under English and Welsh jurisdiction. This document becomes particularly important when establishing new business relationships, bringing in investors, or formalizing existing arrangements between shareholders. The agreement sets out crucial terms including voting rights, share transfer restrictions, and management decisions, while providing protection for all stakeholders' interests. It serves as a cornerstone document that helps prevent future disputes and provides clear procedures for handling various corporate scenarios.
Suggested Sections

1. Parties: Identification and details of all stakeholders involved in the agreement

2. Background: Context of the agreement, company information, and purpose of the stakeholders arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Shareholding Structure: Details of share classes, rights, and ownership percentages of all stakeholders

5. Board Composition: Structure, appointment, removal and proceedings of board members

6. Decision Making: Voting rights, procedures for key decisions, and shareholder meetings

7. Transfer of Shares: Rules and restrictions on share transfers, including pre-emption rights

8. Exit Provisions: Procedures and requirements for stakeholder exit scenarios

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Termination: Circumstances and procedures for terminating the agreement

Optional Sections

1. Tag-Along Rights: Minority shareholder protection provisions allowing them to join in sale of shares

2. Drag-Along Rights: Majority shareholder rights to force minorities to join in sale of shares

3. Anti-dilution Provisions: Protection mechanisms against share value dilution in future funding rounds

4. Dividend Policy: Specific arrangements for distribution of profits and dividend payments

5. Non-Compete Provisions: Restrictions on stakeholders competing with the company

Suggested Schedules

1. Schedule 1 - Share Capital Table: Detailed breakdown of current shareholding structure and share classes

2. Schedule 2 - Reserved Matters: List of decisions requiring special majority or unanimous approval

3. Schedule 3 - Business Plan: Initial business plan and strategy of the company

4. Schedule 4 - Deed of Adherence: Template document for new shareholders joining the agreement

5. Schedule 5 - Company Details: Key company information including registered office, directors, and share capital

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, including shareholder rights, directors' duties, company decision-making processes, share transfer provisions, and meeting procedures

Financial Services and Markets Act 2000: Legislation covering financial promotions, investment restrictions, and financial services regulations applicable to stakeholder relationships

Small Business, Enterprise and Employment Act 2015: Legislation covering transparency requirements and corporate governance provisions for businesses

Common Law Principles: Fundamental legal principles including contract law basics, fiduciary duties, and principles of equity that govern stakeholder relationships

UK Corporate Governance Code: Guidelines and best practices for company management, board composition, and corporate responsibilities

Financial Conduct Authority (FCA) Rules: Regulatory framework applicable to FCA-regulated companies, governing financial conduct and stakeholder protections

UK Takeover Code: Regulations governing company acquisitions, mergers, and takeovers that may affect stakeholder interests

General Data Protection Regulation (GDPR): Data protection requirements affecting how companies handle stakeholder personal information

Competition Law: Regulations governing anti-competitive practices and merger control provisions that may impact stakeholder agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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