Translating a shareholders' agreement: an essential step in securing your cross-border relations

Translating a shareholders' agreement: the key to secure cross-border relations
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In today's globalized legal environment, translating a shareholders' agreement is more than just a linguistic exercise. It affects your company's legal security, and can influence the outcome of a capital transaction, a dispute or a cross-border merger. You're not just translating words: you're transposing obligations, commitments and control mechanisms.

Translating a shareholders' agreement is more than just translating a contract

A shareholders' agreement contains stipulations of high legal value. Some may have a direct impact on the control of the company or the financial rights of the parties:

  • Exclusion or inalienability clauses
  • Anti-dilution mechanisms
  • Right totag-along ordrag-along
  • International arbitration or mediation clauses

When it comes to translation, every word must be considered from a legal point of view. Translating a non-competition clause into English according to an Anglo-Saxon legal system can totally change its scope.

Legal translation: why a general translator is not enough

A non-specialized translator could, for example, translate "cession sous condition suspensive" as an erroneous formulation in a common law system, where the concept of condition precedent does not have exactly the same effects. This can have serious consequences:

  • Misinterpretation before a regulatory authority
  • Partial document invalidation
  • Longer processing times (particularly in fund-raising processes)

This risk is not theoretical. It materializes in litigation, legal audits and international transactions.

Case in point: partnership agreement for a fund-raising operation in England

A French start-up opens up its capital to a London-based fund. To secure the deal, due diligence requires an English version of the shareholders' agreement. The pre-emption clause was translated without taking into account English contractual logic, and the right of priority was deemed inapplicable in its form. As a result, the transaction was delayed by two months. A version proofread by a specialist translator would have avoided this blockage.

Our approach at Legal 230

At Legal 230, the translation of a partnership agreement is treated as an act of legal transposition, not simply a matter of putting it into words. Our translators work on the basis of :

  • of multilingual legal glossaries by area of law
  • contractual corpuses from both legal systems (civil law/common law)
  • close collaboration with our legal reviewers for sensitive cases (litigation, arbitration proceedings, regulatory contexts)

We work with both law firms and legal departments, in the context of M&A, restructuring, litigation or international tenders.

👉 Contact Legal 230 for a rigorous legal translation tailored to your specific needs.