Shareholder Deeds of Adherence and Termination
When shareholders change or when a shareholders’ agreement is no longer needed, formal documentation is essential to keep your company’s legal framework accurate and enforceable.
Simply-Docs provides two complementary, solicitor-drafted deeds for managing the life cycle of a shareholders’ agreement. Each deed is professionally written to comply with UK company law and is designed to be used alongside Simply-Docs’ range of Shareholder Agreement Templates.
Deed of Adherence
Purpose:
A Deed of Adherence enables a new shareholder or investor to become legally bound by an existing shareholders’ agreement. It ensures that every party whether existing and/or new operates under the same contractual rights and obligations.
Key Features:
- Formally joins a new shareholder to an existing shareholders’ or joint venture agreement.
- Legally binds the joining party to all terms, covenants, and obligations in the agreement.
- Maintains consistency and enforceability without redrafting the original document.
- Includes execution provisions suitable for individuals and companies.
- Complies with English law and allows execution in multiple counterparts.
Why Use A Deed of Adherence?
✔ Keeps the original shareholders’ agreement valid and enforceable.
✔ Avoids the need to re-negotiate or re-execute the full agreement.
✔ Ensures new investors or partners are immediately bound by the same terms as existing shareholders.
Deed of Termination of Shareholders’ Agreement
Purpose:
A Deed of Termination is used when shareholders decide to end their existing shareholders’ agreement; for example, on a company sale, restructuring, dissolution, or when the agreement is no longer required.
It formally releases all parties from their contractual obligations while allowing specific clauses (such as confidentiality or restrictive covenants) to remain in force.
Key Features:
- Terminates a shareholders’ agreement with immediate effect upon execution.
- Releases and waives all past and future obligations and liabilities between the parties.
- Allows continuation of selected clauses (e.g. confidentiality, post-termination restrictions).
- Provides for each party to bear its own legal costs.
- Executed as a deed for enforceability under English law.
Why Use a Deed of Termination?
✔ Ensures clean, legally effective termination of the agreement.
✔ Protects parties from future claims or disputes.
✔ Maintains any post-termination obligations you wish to preserve.
These deeds form part of Shareholder Agreement Documents ensuring that your shareholder relationships are properly documented from entry to exit.
Benefits of Using Simply-Docs Templates
✅ Drafted by UK solicitors and updated to current law
✅ Editable Word format for easy completion
✅ Suitable for limited companies and joint ventures
✅ Designed to complement all Simply-Docs Shareholder Agreements
Please click on the links below for full details of the templates:
Shareholder Deeds of Adherence and Termination is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.