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WK LegalIndependent Legal Advice

Shareholder and founder agreements

The agreement that decides who controls the company, what happens to shares when someone leaves, and how disagreements are resolved before they become disputes.

From £1,500 · one company and its existing shareholders

When this is useful

Situations this service is for

  • Two or more founders are starting a company and have not written anything down.
  • A new shareholder is joining and the existing arrangements are informal.
  • One founder is contributing money and another is contributing time.
  • You want vesting, so that shares are earned rather than simply issued.
  • A shareholder wants to leave and there is nothing that says what happens to their shares.

What we do

The work itself

  • Set out how decisions are made, and which decisions require more than a simple majority.
  • Deal with share transfers, pre-emption rights and what happens on a sale of the company.
  • Address leaver provisions, including the difference between a good and a bad leaver.
  • Cover vesting where founders want shares earned over time.
  • Deal with founder commitment, confidentiality and restrictions after departure.
  • Check the agreement works alongside the company's articles rather than against them.

Before you book

What to send us

  1. 01The company number, or confirmation that the company is not yet formed.
  2. 02Who holds what, and what each shareholder is contributing.
  3. 03Any existing articles, shareholders' agreement or investment documents.
  4. 04What you want to happen if a founder leaves, and if the company is sold.
  5. 05Whether outside investment is expected.

What happens

How the work runs

  1. 01

    The difficult questions, early

    Most of this work is helping founders decide things they have been avoiding. We put the questions in a structured order.

  2. 02

    Scope and fee

    Confirmed in writing once the shape of the arrangement is clear.

  3. 03

    Drafting

    A first draft, with the decision points flagged where the founders have not yet agreed.

  4. 04

    Revisions and execution

    Revisions within the agreed allowance, then an execution version and a note on what also needs to be filed or amended at Companies House.

What you receive

Deliverables

  • A shareholder or founder agreement drafted for the company's actual circumstances.
  • A note of any consequential changes needed to the articles.
  • An execution version with signing instructions.

Fee

From £1,500

This price assumes

  • One company and its existing shareholders
  • Two revision rounds

Included

  • Scoping call covering control, transfers, leavers and vesting
  • Bespoke draft
  • Two revision rounds
  • A note of any consequential changes needed to the articles

Not included

  • Tax advice, including on share incentives
  • Advice to the other shareholders, who should take their own

Prices are indicative minimums for matters within the assumptions shown. We review the document and confirm a fixed fee in writing before any work begins. No legal advice is given during the free initial assessment.

All fees and what changes them

Questions

Common questions

Do we need one if we have articles of association?
Model articles say almost nothing about the things founders fall out over. A shareholders' agreement is where those things are decided, and unlike the articles it is not a public document.
Can you act for all the founders?
Only where interests are genuinely aligned and no conflict arises. Where they are not, we act for one and the others take their own advice.
What if we already have investors?
Investment documents usually take priority and constrain what a founder agreement can say. Send them across and we will work within them.

Send us the document and we will confirm whether we can assist.

You will get a straight answer on scope, fee and timing before any work begins.

Enquiries receive a response within one working day.