Shareholder agreements: the key to avoiding business disputes
SF Abogados warns that many disputes between partners could be avoided by establishing clear rules from the outset of the project.
In practice, it is common for companies to begin operations based on trust between partners, without drawing up specific agreements. However, when disagreements arise, this lack of foresight can lead to deadlocks in decision-making and even jeopardise the continuity of the business.
An essential agreement beyond the articles of association
A shareholders’ agreement is a private contract that complements the articles of association and regulates key aspects of the relationship between shareholders.
Its purpose is to anticipate potential conflicts and establish clear rules that provide security and stability for the company.
Common risk scenarios
Conflicts often arise over issues such as:
- The entry or exit of partners
- Profit distribution
- Strategic decision-making
Without prior provisions, these situations can lead to complex and costly problems.
Clauses that make the difference
A well-designed partnership agreement should include:
Decision-making systems
- Rules governing the transfer of shares
- Exit mechanisms
- Conflict resolution, including ADR (Alternative Dispute Resolution)
Planning ahead is key
SF Abogados recommend formalising this type of agreement from the outset, when there is greater alignment between the parties.
A partnership agreement is not only a preventive tool, but also an essential element in ensuring the stability, legal certainty and growth of the business venture.
