Shareholders agreements are complicated but necessary
A Shareholders Agreement is the “pre-nup” for your company. It is an agreement between all shareholders which governs how the company will be run and what the rights of each shareholder are.
Most people underestimate how much potential there is for disputes with business partners, and how many issues may arise which they have never considered. If you fail to set out clear rules and processes in place for changes in circumstances, decision-making and key events, you are running a huge risk for disputes to arise down the track. This is particularly important for a growing business which intends to bring future investment or partners down the line.
The future is uncertain, you need protections in place
Everyone likes to think that they get along fine with their business partners, but you never really know what the future holds - especially as the business grows. Companies can be derailed due to changes in circumstances, for example:
- Shareholders have disagreements about running the business, bringing in partners or even closing the business
- Shareholders lose motivation or are offered other opportunities and want to leave
- Shareholders are not pulling their weight or there is a disagreement about roles
- Personal circumstances such as family, health or accidents may impact a shareholder’s attitude and desires
Without a comprehensive agreement in place, these issues can grind a business to a halt and stop it from functioning effectively.
Act confidently with a tailored agreement
We can provide you with a tailored shareholders agreement which sets out all of the processes and ground rules. Be sure that our agreements will consider important elements such as:
- Director appointment powers and decision making
- Minority shareholder protections
- Appropriate mechanisms for financing
- Dealing with defaulting shareholders and disputes
We have experience working with different sized clients across a range of industries, so we know what recommendations to make and what to look out for.
Frequently asked questions
Can I do this myself?
Are your documents automatically generated?
Is the price a fixed-fee?
Can I speak or meet with a lawyer, and will this cost extra?
What if I need this urgently?
This package doesn’t suit me, can I create my own one?
What if the document or advice I need isn’t on the website?
- Free consultation
- Done for you tailored legal documents to suit your needs
- Initial drafting and review + one round of amendments
- Practical legal advice
- Fast turnaround times (5-7 days)
Looking for practical legal advice?
Tell us about your legal needs and we’ll get back to you within 1 business day.Schedule free consultation