Shareholders’ Agreement: Tips for Successful Negotiations
Irina Kuheika, a lawyer at REVERA, has shared practical advice on how to conduct successful shareholders’ agreement negotiations.
- Preparation is key. Before entering into negotiations, it is essential to define your objectives and expectations clearly. Make a list of key requirements and potential areas for compromise. A clear understanding of your needs will facilitate a smoother negotiation process.
- Be prepared to compromise. No party will achieve everything they desire, but it is possible to strive for a mutually beneficial, win-win outcome. Identify where you are willing to make concessions and which matters are non-negotiable. This approach helps to reach common ground efficiently and avoid unnecessary disputes.
- Foster an atmosphere of trust. Openness and honesty create a positive impression and contribute to productive discussions. Aim to structure negotiations in a spirit of cooperation rather than confrontation. Listen to the other party’s perspective and demonstrate a willingness to work together.
- Discuss the details. Carefully examine all aspects of the agreement, including financial terms, allocation of responsibilities, and intellectual property rights. If legal or financial questions arise during the discussions, do not hesitate to seek professional advice. An experienced lawyer or consultant can help prevent mistakes and safeguard your interests.
- Document all arrangements. Even verbal arrangements should be recorded. At the conclusion of negotiations, draft a written agreement and review it thoroughly. Ensure that the document accurately reflects all parties' agreements.
- Conclude the negotiations. Once all terms have been agreed upon, confirm the understanding of all parties involved. Ensure that everyone consents to the terms. Only sign the document after a careful review of its contents.
Shareholder’s agreements can lay the foundation for a successful and mutually beneficial collaboration if approached with diligence. We hope these tips assist you in achieving that goal!
Author: Kuheika Irina
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