Shareholder agreements & partnerships

Shareholder Agreement icon

Shareholder agreements and partnerships are important to any business.

It is important to any business which has more than one shareholder/partner, that it has a shareholders agreement. A shareholders agreement sets out the rights and responsibilities of each shareholder, providing a process to be followed in making decisions. A well drafted shareholders agreement gives the shareholders certainty and is essential to reduce the risk of substantial legal costs, drawn out and stressful legal proceedings in the event of a dispute.

We spend time to understand your needs and tailor shareholders agreements to fit. It is best to have a shareholders agreement prepared early on in the life of the business. Shareholders agreements typically address the following matters relating to the business:

  • Management of the business, including the right of shareholders to appoint and remove directors
  • Shareholders and director’s meetings, requirements for meetings
  • Decisions which require unanimous approval
  • Deadlock
  • Rights of different classes of shares
  • Transfer of shares or exiting shareholder
  • A process for valuing the shares
  • Non-compete and confidentiality
  • Consequences of a breach
  • Dealing with shares of a shareholder who dies or becomes incapacitated

Read our blog to learn about why shareholders need a formal agreement.

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