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    Shareholders Agreement

    Glossary

    Shareholders Agreement

    A Shareholders Agreement is a private contract between the shareholders of a UK company that governs the rights and obligations between them, sitting alongside (but not replacing) the Articles of Association.

    Unlike Articles, the Shareholders Agreement is private (not filed at Companies House) and can include personal commitments — drag-along and tag-along rights, deadlock-resolution mechanisms, restrictions on competing activities, exit provisions, reserved matters requiring unanimous consent. Essential for any company with two or more unrelated shareholders, multiple investor classes, or external investors. Typical agreements are 20-40 pages of professionally-drafted contract.

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