Having a close friend as a business partner always seems like the best idea, and a lot of the time it is. But you should also consider how each of you want to run the business. 

Our advice is to pause for a moment and discuss what you both see for the future of your business, whether these views align or not, it’s always a good idea to get everything in writing. This is where a shareholder agreement becomes essential.

It might sound unlikely now, but even the strongest partnerships can face challenges as a company grows. Circumstances change. One of you might want to bring in investors, while the other prefers to stay independent. You might have different ideas about expansion, selling shares, or stepping back from day-to-day management.

A shareholder agreement helps take the stress out of those tough decisions by setting out, in writing, exactly how they should be handled.

What is a Shareholder Agreement?

A shareholder agreement is a contract between a company’s shareholders that sets out how the business will be owned, managed, and operated. It answers the “what if” questions before they ever arise.

By agreeing these terms early, you protect both the business and the people behind it. It helps avoid misunderstandings, reduces risk, and provides a clear framework for resolving issues. Simply put, it gives structure and certainty when you need it most.

It will feel much better to have these conversations while everyone’s aligned, rather than trying to reach agreement later when tensions are high.

How Gordons Partnership Can Help

At Gordons Partnership, we give straightforward legal advice from lawyers who listen. Founded in 1994, we’ve built a reputation for expertise, efficiency, and practical guidance that helps businesses make confident decisions.

Our Corporate and Finance Law Department advises on all aspects of corporate law – from setting up a new venture to managing complex M&A and finance transactions. We regularly assist with:

  • Acquisitions and disposals of companies and businesses
  • Joint ventures and shareholder agreements
  • Venture capital and private equity transactions
  • Equity and debt fundraising
  • Directors’ responsibilities and corporate governance

Our clients range from start-ups and owner-managed businesses to established corporates and listed companies. What they value most is our clear, commercial approach and the reassurance that comes from working with lawyers who understand business realities, not just the law.

As one client, Hugh Godsal, COO of Ink Publishing, put it:

“Gordons have always provided great advice and very good value. As well as being excellent lawyers, they are refreshingly commercial.”

Start Your Business on the Right Foot

If you’re launching a company or entering a new partnership, a shareholder agreement is one of the smartest steps you can take. It brings clarity, protects your interests, and helps future-proof your business against avoidable disputes.

Our corporate team can guide you through the process and prepare an agreement that fits your goals and reflects how you want your business to work.

To speak to a member of our team, call 01483 451900 (Guildford) or 020 7421 9421 (London).

Alternatively, email sols@gordonsols.co.uk or fill out our contact form.