A shareholders agreement is a contract negotiated by the shareholders of a company outside the Corporations Act to govern their relationship and business arrangements, detail their rights, responsibilities, obligations and liabilities, and protect their interests — with regard to their particular circumstances. It regulates matters not covered by a company’s constitution and is therefore supplementary to a company’s constitution.
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You will need the following information to generate your document:
- Number of shares issued per shareholder
- Names of all shareholders
- Addresses of all shareholders
The LVDox™ Free Shareholders Agreement allows you to ensure that the relationship between the company’s shareholders is documented in a basic manner.
Important terms covered in this document include:
- operation of the business;
- directors of the board and board meetings;
- duties of directors and general meetings;
- dividends, restrictions on parties and events of default;
- first right of refusal and drag along; and
- insurance, loan accounts and confidentiality.
The LVDox™ Free Shareholders Agreement is only suitable for very simple companies.
The following clauses can be customised by one of our lawyers to your specific needs:
- good leaver/ bad leaver provisions;
- setting out how critical business decisions will be made;
- a structure ensuring subsequent shareholders can accede to the shareholders agreement by deed of accession;
- a structure allowing the company to be independently valued in the event of a shareholder dispute;
- a shareholder vesting structure;
- a clause which sets out how intellectual property developed by directors, key personnel and shareholders should be managed;
- drag along and tag along to be customised for the business’s needs;
- division of power between shareholders and directors;
- balance of power between majority and minority shareholders;
- protecting minority shareholders so they are comfortable to invest;
- Setting out how working capital and loans will be managed;
- Setting out how shareholders can sell their shares; and
- Protecting the company with comprehensive dispute resolution and non-compete provisions.
You can choose to upgrade your LVDox to a LVDox Pro document. Upgrading your legal document has the following benefits:
- Consultation with a lawyer specialising in your industry
- Review of the legal requirements for your business
- Drafted specifically for your business and industry
- Document reviewed and signed off by a lawyer
- Covered by LegalVision’s professional indemnity insurance
- We provide a fixed-fee service so there are no surprises