A shareholders agreement is an agreement between the shareholders of the company and the company. It aims to protect the investment of shareholders in the company. The agreement can be between all or some of the shareholders and it needs to establish a fair relationship among all the shareholders.
The shareholders of a business ultimately need to determine what should be included in the company’s shareholders agreement. The clauses to be included will depend on a number of factors, including the type of business conducted, the number of shareholders and the goals of the company. The aim of this agreement is to:
- determine the rights and responsibilities of the shareholders
- regulate the company’s shares
- describe how the company is going to be run
- provide protection for minority shareholders and the company
- determine how important decisions should be made
At Parke Lawyers we have a team of specialist business lawyers and we regularly draft various shareholders agreements for our clients. These agreements are unique as no two businesses are the same. Some of the more common clauses include:
- dividend payments
- competition restrictions
- running the company
- issuing and transferring of shares
- dispute resolution processes
When it comes to preparing a shareholders agreement, the specialist business lawyers at Parke Lawyers in Melbourne can tailor all appropriate agreements for your business to protect your interests.