Legal Documents you may need as a Limited Company

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Legal Guide Document

There are many legal documents that you will need as a limited company. With Dragon Law, you can get access to all the documents you need. Creating documents is fast, easy, and affordable.

Shareholders' Agreement

This is a vital agreement. Putting in place a Shareholders' Agreement formalises the rights and obligations of the shareholders. This document should cover who the shareholders are, their rights and responsibilities, and how key decisions are made, including the proportion of shareholders' votes required to pass certain resolutions, the procedure for transferring shares, what happens when shareholders leave, and what happens if further shares are issued (for example to an investor).

Founders' Agreement

If two or more founders own the company, a Founders' Agreement can be used instead of a Shareholders' Agreement. A Founders' Agreement is similar to a Shareholders' Agreement but is normally used for the first, or "founding", members of the company.

Share Certificate

Each shareholder will need a Share Certificate as evidence of his or her shareholding in the company.

Request for Payment of Interest or Dividends

After having paid corporate tax, remaining profit can be paid as dividends to the company shareholders. A Request for Payment of Interest or Dividends enables the shareholders to receive interest or dividends.

Company Secretarial Documents

The company secretary is responsible for the efficient administration of a company, particularly to ensure compliance with regulatory requirements and to make sure that decisions from the board of directors and shareholders are properly recorded by Company Secretarial documents. Some examples of decisions that require the board's approval are opening a bank account, appointing first auditors, allotting and issuing new shares, changing the financial year end, and appointing new directors. Some examples of decisions that require shareholders' approval are changing the company's Articles of Association, changing the company name, removing the need for an Annual General Meeting, and appointing new auditors.

Confidentiality Agreement

When running a business, you may need to share commercially sensitive information. It is important that you preserve confidentiality with a legally binding agreement, especially when intellectual property is at stake. A Confidentiality Agreement, also known as a Non-disclosure Agreement (NDA), allows you to enter into business relationships without having the risk of information being misused or going to third parties without your consent.

Letter of Intent

Before you enter into a formally binding contract, a Letter of Intent (Memorandum of Understanding) can help to set out the key terms of a potential agreement. A Letter of Intent (Memorandum of Understanding) typically includes details of the proposed agreement, pre-conditions, key obligations, the next steps, and the intended signing date. It can be used as a roadmap for further negotiations and to obtain a final agreement more easily. This document is not legally binding, but it can contain certain legally binding clauses, such as confidentiality.

Employment Contract

You might need to hire people. An Employment Contract sets out the obligations and expectations of both the partnership and the employee right from the beginning. An Employment Contract should cover key areas such as probation period, pay, benefits, hours, annual leave, and termination. It will help to minimise disputes and ensure a happy working environment.

Non-executive Letter of Appointment

Non-executive directors can provide valuable independent advice. If the company decides to appoint a non-executive director, a Non-executive Director's Letter of Appointment is needed. This agreement sets out clear directorship terms, laying the foundation for a mutually rewarding relationship between company and director. It covers key areas such as director's duties, payment of fees, tax, insurance, and indemnity arrangements.

Loan from Director or Shareholder

If the company intends borrow money from directors or shareholders for funding purposes, it's vital to have professionally written agreements in place to protect everybody's interests. A Loan from Director or Shareholder covers repayment details, warranties given by the borrower, obligations and restrictions on the borrower, and how to end the loan agreement.

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