Deed of Adherence: Share transfer

Deed of Adherence for a new shareholder who has acquired shares through transfer to agree to become a party to the company’s existing Shareholders Agreement, in the form of a Deed between the new shareholder and the company.

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When do I use this document?

  • in conjunction with a transfer of shares
  • where the new shareholder is required to become party to, and bound by, the company’s Shareholders Agreement
  • where the Shareholders Agreement does not include the required form of Deed of Adherence 

What are the key features?

  • different forms of Deed of Adherence, depending on whether the new shareholder is an individual or a company
  • in the form of a Deed between the company and the new shareholder

What else do I need to know?

When is a Deed of Adherence required?

When shares are transferred to someone who is not already a shareholder, the new shareholder may be required to agree to become a party to the company’s existing Shareholders Agreement.  This requirement can be found either in the company’s Articles of Association or in the Shareholders Agreement.

This requirement is satisfied by the transferee executing a Deed of Adherence to the Shareholders Agreement.  This process also applies where a new shareholder acquires shares by way of the issue of new shares.

What other documents are available?

For a form of Deed of Adherence where the new shareholder becomes a shareholder on the allotment of new shares in the company, see

When do I use this document?

  • where an individual’s personal service company has been appointed to act as a consultant
  • for the individual to give direct legal undertakings to the client

What are the key features?

  • legally binding undertakings from the individual which owns the service company to the client
  • undertakings relating the following matters:
    • continued ownership of the service company by the individual
    • availability of the individual to perform the services
    • performance of the Consultancy Agreement by the service company
    • continued employment of the individual by the service company
    • ownership of intellectual property in materials/work product generated during the consultancy

What else do I need to know?

This is a Side letter to a consultancy agreement where the consultant is an individual’s personal service company.  Under the side letter, the individual gives undertakings to the client regarding the personal service company and compliance with the consultancy agreement. This letter is for use in conjunction with a Consultancy Agreement between the client and the individual’s service company.

A Consultancy Agreement may be for the appointment by the client of an individual’s personal service company.  The service company agrees to provide consultancy services to the client, which will be carried out by the individual.

The individual is not a party to the Consultancy Agreement itself, which is between the client and the service company.

To help ensure that the individual will be available to provide the services and responsible for the performance of the Consultancy Agreement by the service company, the client will often require a letter from the individual to the client under which the individual will enter into legally binding undertakings directly with the client.

More information about consultancy agreements

What other documents are available?

For a form of consultancy for a service company on a time basis, see

For a form of consultancy agreement with a service company on a project basis, see

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Updated by a lawyer on 06/08/2024

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