Incorporation and company secretarial service

LGP can incorporate a new company, provide board minutes, share certificates and statutory registers as required. Depending on the corporate structure, you may also require tailored Articles of Association and member resolutions to adopt these. Companies are required to file a number of forms at Companies House and we can complete and file these for you. We also offer a company secretarial service, which covers, amongst other things, dealing with the concept of “persons with significant control” (“PSCs”) and the registers and consents needed for this.

Articles of Associations and Shareholders’ Agreements

Share rights, company decisions and structural changes are governed by articles of association. These can be relatively straightforward based on default “Model Articles” or can be tailored according to your company’s equity set-up and long-term aims, to ensure that the correct protection/flexibility is covered.

In most situations, it is sensible to have a private shareholders’ agreement as well. This will set out where you all stand with one another in terms of control over the important business decisions, financial commitments, share transfers and allotments, ability to compete with the company, what happens if the majority shareholders want to sell the entire share capital and disclosure of information.

Debt and equity investments

Investments usually come in the form of loans and/or share subscriptions. If the company and investors satisfy certain criteria, the investors, in particular, may be able to benefit from tax relief. LGP can prepare a confidentiality agreement and/or exclusivity agreement to bind the investors during the due diligence process, as well as the investment documents themselves.

Company acquisitions and sales

You may have been approached by someone interested in buying your company but you’re not sure whether to sell the shares or the assets, or you may already be very familiar with the process and simply want LGP to complete the transaction as quickly as possible. We will adapt our service to suit your needs.

Company sales and purchases usually begin with heads of terms, a confidentiality agreement and then a due diligence process. We usually manage this for either the seller or buyer in order to ensure that the appropriate questions are asked or the responses are accurate and well presented, in order to represent the seller professionally and avoid disputes later on.

Once the buyer is comfortable, their solicitor will produce a draft share purchase agreement (if you are selling shares) or a business/asset purchase agreement (if your company is selling its assets). We will explain this to you, take your instructions on any clauses of concern or uncertainty, and negotiate it on your behalf. We will also discuss the financial clauses with your accountant.

The purchase agreement (whether for shares or assets) is likely to include several pages of warranties, which are statements of fact at completion (usually). If these are not true at that time, the buyer may have a right of action against you after completion. To minimise the seller’s risk, we will prepare a “Disclosure Letter” and bundle (based on the information you give us), include clauses to limit your liability and negotiate the warranties themselves.

We will also prepare any ancillary documents, such as consent letters, assignment deeds, completion board minutes and written resolutions. The articles of association and/or shareholders’ agreement may need to be changed to fit the buyer’s situation.

If there are several warrantors, it may be advisable to put a contribution agreement in place to set out who will pay how much if there is a successful claim for breach of warranty.
If you are involved in an asset purchase, you will need to be advised on the Transfer of Undertakings (Protection of Employment) Regulations 2006 as amended (“TUPE”), which protect employees during this process. Depending on what changes, if any, are to be made in relation to the employees, there are strict information and consultation requirements on the outgoing and incoming employer and a failure to comply with these will trigger financial penalties. There are also elections and other requirements that need to be factored in as well.

Throughout the process, we explain the clauses and risks involved, keep you up-to-date and take your instructions on what’s important to you. Each client’s priorities are different and, once we have advised you on your options, we will act according to your specific requirements.