A shareholder pact can not only help regulate shareholder relations, but a carefully crafted agreement could also regulate the way your business is run. In general, the day-to-day management of a business is the responsibility of a company`s executives, and business decisions are made by a simple majority at the board level. Graham Muth has had more than 25 years of entrepreneurial legal work and extensive experience in managing all types of shareholder agreements, private equity transactions, mergers and acquisitions and IPOs. In 1981, he joined Cobbetts` predecessor, Lee Crowder, qualified as a lawyer in 1983, became a partner in 1987 and became bureau chief of the merged Cobbetts company in 2006. Sean Fitzgerald is the head of the business team in Manchester near Cobbetts, who came from Pinsent Masons more than six years ago, where he was one of the partners in the company`s Manchester office. He specialized in private equity and led Cobbetts into the institutional private equity market. Since shareholder agreements are not legal requirements, they are often overlooked by companies that are starting out, as resources are often limited and money impertrations are committed elsewhere. There are several compelling reasons to enter into a formal shareholder pact when setting up a business, the main advantages to consider are: Although it cannot be at the top of your priorities when you start your new business project, the process of headquarters and the development of a detailed shareholder pact can clarify the expectations of each shareholder and help establish a fair and fair relationship between shareholders. A shareholder pact can provide clarity and security with regard to corporate procedures. You also show foresight and above all the willingness to invest in the future of your business. A shareholder pact brings additional stability to your business and shows potential funders that it`s worth investing in your business.