Document background
A 50/50 Shareholder Agreement is essential when two parties hold equal shares in a company governed by English and Welsh law. This document becomes particularly crucial as it provides a framework for managing potential deadlock situations and ensuring smooth business operations. The agreement typically includes provisions for decision-making, dispute resolution, share transfers, and exit strategies. It should be implemented at the company's formation or when the shareholding structure becomes equally split between two parties. The agreement helps prevent business paralysis and provides clear mechanisms for resolving disputes that may arise between the equal shareholders.
