Skip to content

Drafting a Shareholders Agreement: Why are general meetings so important?

Do you have a company? Have you prepared a shareholders agreement? Does your shareholders agreement cover general meetings? Have you even spoken to business lawyer about the prospect of getting a shareholders agreement drafted?

The shareholders agreement, amongst many other important things, sets out the rights, responsibilities, and obligations of the shareholders of your company. One of the responsibilities of a shareholder is to attend general meetings. General meetings are typically between the shareholders of the company. They are very important, as they provide an opportunity for shareholders of a company to come together and make collective decisions on important matters regarding the company.

What decisions can be made at a general meeting?

Decisions that can be made at a general meeting include:

  • Whether the company should issue new shares, and if so, how many shares and what type of shares are to be issued;
  • Whether the company should enter into a loan agreement or debt over a certain amount;
  • Whether the company should be sold to another individual or entity;
  • Whether a shareholder of a company can obtain a loan from the company;
  • Whether a certain director should be removed as director;
  • Whether the company should make a claim or commence legal proceedings for a particular matter;
  • Whether to change the dividend policy of the company; and
  • Whether the company should create an employee share plan.

These are only some standard decisions that can be made at a general meeting. When you are drafting your Shareholders’ Agreement, your business lawyer can surely add to, or take away from, this list. It is entirely up to you, as the shareholders agreement governs how you, as a shareholder, wish for the company to operate.

Conclusion

A shareholders agreement is one of the most important legal documents for your company. If you are not the sole owner of the shares in your company, it is recommended that you have a shareholders agreement drafted. If your Shareholders Agreement is very detailed in outlining how general meetings will be arranged and what decisions will be made at such meetings, it can help your company to operate more smoothly and with less conflict.

Register for our free webinars

Demystifying M&A: What Every Business Owner Should Know

Online
Understand the essentials of mergers and acquisitions and protect your business value. Register for our free webinar.
Register Now

Social Media Compliance: Safeguard Your Brand and Avoid Common Pitfalls

Online
Avoid legal pitfalls in social media marketing and safeguard your brand. Register for our free webinar.
Register Now

Building a Strong Startup: Ask a Lawyer and Founder Your Tough Questions

Stone & Chalk Tech Central, Level 1 - 477 Pitt St Haymarket 2000
Join LegalVision and Bluebird at the Spark Festival to ask a lawyer and founder your startup questions. Register now.
Register Now

Construction Industry Update: What To Expect in 2026

Online
Stay ahead of major construction regulatory changes. Register for our free webinar.
Register Now
See more webinars >
Priscilla Ng

Priscilla Ng

Read all articles by Priscilla

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards