CORONAVIRUS:   Lawson-West is ‘Open for Business’ and here to help you with your legal needs.

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Do you own 50/50 shares in a company with another party?

We recently had an enquiry from a client who is a 50% shareholder, director and employee with her business partner in a company. Although the relationship was good when the company was formed two years ago, it has since turned acrimonious, both parties have separate goals and aspirations for the business and are not on speaking terms.

In the absence of a shareholders agreement, our client is stuck or “deadlocked,” meaning the company cannot progress decisions of the shareholders as they hold 50/50 ownership. We advised her she could take lengthy court action to force the other shareholder out or to try and liquidate the company. Alternatively, she could set up another company and resign from the existing one. All options are costly, time consuming and could have disastrous consequences on her business. 

Had there been a properly drafted shareholder’s agreement from the outset this would have covered the deadlock situation and other important factors, meaning less costs and headache for each party. We advise all our clients who are setting up a 50/50 business not to leave it too late, limit your exposure to risk by getting the right legal documents at the beginning. 

If you jointly own a business and would like to draft or review your shareholders agreement please contact Lawson-West Commercial Solicitor David Heys on 0116 212 1000.   

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Coronavirus: It is ‘Business As Usual’ at Lawson-West

We’ve made plans to continue to deliver the best service during the pandemic and we’re committed to helping clients over the coming weeks and months.

From time to time, we will be posting updates about our business operational response to the implications of the virus on our website and on our social media pages on Facebook, Twitter and LinkedIn.

For now, you can be assured that we are ‘Open for Business’ and here to help you with your legal needs. You can email your regular contact at Lawson-West and we will respond, alternatively, email mail@lawson-west.co.uk or continue to browse our website at www.lawson-west.co.uk for more information about our services and how to contact us.

We are driven by our commitment to help others.
We are here. For you.

Lawson-West Directors

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