A Finchley-based accountancy firm has advised local entrepreneurs to plan for the future to prevent disputes with business partners.
Specialists from Richard Anthony Chartered Accountants say that all limited companies that are owned by more than one individual should consider putting a Shareholders’ Agreement in place.
The firm issued the guidance after new figures revealed that the London Borough of Barnet is amongst the UK’s top 10 area start-ups, with more than 9,000 new businesses created in 2017.
Michael Barnett, a Partner at Richard Anthony, said: “The fact that so many start-ups have been established is excellent news for our local area and it is wonderful that so many people have chosen Finchley and Barnet to be the home of their new business.
“Many of these businesses will have been started by people working as business partners and while setting up a new business is by definition a time for optimism, it is important that they protect themselves against future disputes.
“One of the most effective ways in which they can do this is by putting a Shareholders’ Agreement in place. The best time to do this is while the business is being established, but it can be put in place or amended at any point in the life of a company.
“A Shareholders Agreement will set out in detail the rights and responsibilities of each shareholder and the arrangements that will apply in the event that a dispute arises or a shareholder becomes incapacitated, for example.
“Shareholders Agreements are highly effective at preventing disputes arising in the first place, offering vital protection to all parties.
“I would urge entrepreneurs and business owners who do not already have a Shareholders Agreement in place to contact us today for advice.”