Description
Shareholders Agreement Template
What does this agreement do?
So, what is a Shareholders’ Agreement? A Shareholders’ Deed is a binding contract between the shareholders of a company, defining the shareholders’ rights, privileges, protections and obligations. With this Shareholders’ Agreement template, you can quickly and conveniently note down all of these terms to the agreement in a legally binding document.
Why do I need this?
While there is no legal requirement to have a Shareholders’ Deed, if you are starting up a proprietary limited company in Australia with another person, taking on the responsibility of being a director of that company and investing your time and money in that company, we highly recommend that you consider purchasing this Shareholders’ Agreement template in Australia, with Bayard Lawyers. In our experience, unexpected issues do arise between directors and shareholders, so it’s best to be properly prepared. Some of the key considerations that you can secure yourself against include:
- Unexpected Exit
What happens if a shareholder dies or becomes unable to work. These issues are often not adequately dealt with in shareholders agreements. Our Shareholders’ Deed includes a clause that provides for the death or permanent disability of a shareholder. - Director Appointments
Our Shareholder Deed sets out the shareholders rights in relation to appointing Directors.Decision Making, Management, Obligations & Information. This is important as it covers the day to day management of the company how management decisions are to be made and all related shareholder obligations. - Transfer of Shares
This is a very important section of any Shareholders’ Deed as it sets out the rights and processes that relate to the transferring of shares between shareholders and third parties, including in the event that a shareholder no longer wants to be a shareholder of the company. - Exit Strategy
An exit strategy in a Shareholders’ Deed needs to include what happens in the event of a buy-out, sale of business and listing. - Deadlocks & Disputes
There are several ways in which deadlocks and disputes can be handled within a shareholder agreement. This Shareholders’ Deed includes specific clauses which can be amended to suit specific circumstances surrounding the company.
What’s the main benefit?
This agreement is designed to give a clear mandate to shareholders in the event of any exceptional circumstances or events such as those listed above. Purchasing this Shareholders’ Agreement template from Bayard Lawyers gives you the peace of mind that you’re protected against these situations should they occur, and you can be sure you’re getting a high quality document from our team of expert lawyers.
Additional key points
- As a Shareholders’ Deed is a complex agreement we recommend that you review the Shareholders’ Deed Checklist and Directors’ Duties summary to consider a range of issues that can arise between shareholders and directors that need to be dealt with in the Shareholders’ Deed.