The focus of a shareholder agreement is usually on what each shareholder will bring to the relationship and the way the new entity will be managed and report its results.
Shareholder agreements are generally entered into by shareholders of private companies. These agreements are best carefully drafted by an experienced law firm to ensure they cover, in the first instance, the core issues relating to the issue of new shares and the rights and obligations that must be complied with in any sale of shares.
There are numerous matters that will be addressed in a shareholders agreement, what happens in the event of a sale and succession.
A shareholder agreement will define the rights and obligations of the parties. Issues which might be addressed are the day-to-day running of the business, management, the role of shareholders how to handle disputes between shareholders ,how profit is to be distributed, to name just a few.
A properly drafted shareholder agreement will almost inevitably save the parties money later on because definition has been given to important matters .
From our experience, just the act of having to think about the issues that a shareholder agreement will address compels the parties to consider issues they would not have otherwise thought through. Everyone is typically happier after this process because the parameters of the process are properly defined.
We have considerable expertise in drafting shareholder agreements, giving special attention to individual circumstances so you will receive a competently drafted and well-presented agreement.
We also provide legal advice in relation to the alteration of shareholder agreements and shareholder disputes (including shareholder litigation).
Call us now on 1300 907 335 or fill out the inquiry form on this page.