A shareholders’ agreement is a legal document that outlines the rights and responsibilities of shareholders in a company. It provides a framework for how the company will be managed, how decisions will be made, and how disputes will be resolved.

For a public limited company (PLC), a shareholders’ agreement is an essential document that helps create a strong foundation for the company`s growth and future success. Whether you’re a new or existing PLC, creating a shareholders’ agreement checklist is important to help ensure your agreement is comprehensive, fair and reflects the interests of all shareholders.

Here are some key items to include in your shareholders’ agreement checklist:

1. Purpose of the Agreement

The purpose of the agreement should be clearly stated to ensure all parties involved understand the intended outcome. This includes outlining the objectives, goals and priorities of the company.

2. Shareholders’ Rights

The agreement should outline the rights of shareholders including the number of shares held, voting rights, and the right to information on company performance.

3. Management Structure

The shareholders’ agreement should outline the structure of company management and who will make decisions for the company. This includes the appointment and removal of directors, CEO, and other key personnel.

4. Company Finances

The agreement should detail how the company’s finances will be managed, including capital contributions and the distribution of profits.

5. Dispute Resolution

In the case of disputes between shareholders, a mechanism must be set up to resolve them. The shareholders’ agreement should outline the steps to be taken, such as mediation or arbitration.

6. Transfer of Shares

The transfer of shares must be outlined in the agreement, including sale or transfer restrictions and valuations.

7. Exit Strategy

The agreement should provide a clear exit strategy for shareholders, including when and how they can sell their shares.

8. Confidentiality

Confidentiality clauses should be included in the agreement to protect the company’s confidential information and business trade secrets.

9. Dissolution of the Company

The shareholders’ agreement should outline the process for the dissolution of the company and how the assets will be distributed to shareholders.

10. Amendments to the Agreement

Finally, the agreement should include a clause outlining how the agreement can be amended and by whom.

In conclusion, when creating a shareholders` agreement checklist for a PLC, it is important to ensure that all the items listed above are included. It is important to remember that creating a comprehensive shareholders’ agreement can help prevent disputes and ensure the long-term success of your company. Consulting with an experienced legal professional is advisable for any company looking to create a shareholders’ agreement.