fbpx
Post

Protect Your Interests as a Shareholder!​

Think of your Shareholders Agreement like a blueprint for your company’s future. Just as you update your plans when life changes, it’s crucial to keep your agreement up to date as your business evolves.​

A Shareholders Agreement is your safeguard for a thriving and prosperous business. It exists to shield the value of your company’s assets and your shares from potential disputes or exits.​

If it’s been a while since your Shareholders Agreement has been reviewed, your business has more than one (1) shareholder or you think you might be approaching a stage where it needs one, reach out to the team to chat through your options.

Already have a Shareholders Agreement in place?​

When was the last time you had your agreement properly reviewed?

Often, these agreements are created when you start your venture but are then forgotten. But as your business grows and changes direction, the original agreement may no longer reflect your current situation.​

Think of your Shareholders Agreement like a blueprint for your company’s future. Just as you update your plans when life changes, it’s crucial to keep your agreement up to date as your business evolves.​

Has your business:​

  • Expanded rapidly?​
  • Taken on investment?​
  • Offered equity to employees?​
  • Appointed new directors?​
  • Changed its funding model?​
  • Altered its management structure?​
  • Discussed an exit for investors?​
  • Thought about the exit strategy for minority investors?​
  • Thought about succession planning for the business?​

If yes, it’s time to revisit your Shareholders Agreement.​

What does a Shareholders Agreement Review involve?​

Our Shareholders Agreement Review service starts at $600 (plus GST). This includes a thorough review by an experienced corporate lawyer and a summary of key issues and risks tailored to your situation.​

A review will provide you and your shareholders with:​

  1. Appropriateness of your agreement for decision making, governance and growth.​
  2. Confidence about exit and succession planning for you and key stakeholders.​
  3. Clear rules for operating and managing the company.​
  4. Understanding of shareholder rights, voting and future proofing. ​
  5. Strategies for bringing on or employee shares or options.​

Don’t wait until you’re facing costly legal disputes. Contact us today!​​

Don’t have a Shareholders Agreement in place yet?

Here’s why having a Shareholders Agreement matters:​​

If you have more than one shareholder, a Shareholders Agreement governs your rights and can provide:​​​​

  • Clarity and Order: Establishes clear rules for how your company is run, providing certainty for everyone involved.
  • Expectations Defined: Clearly outlines what each shareholder is responsible for and what they can expect in return.
  • Exit Strategies: Lays out how shareholders can exit the company or resolve conflicts in a clear and orderly manner.
  • Future Planning: Provides a roadmap for succession or estate planning for all shareholders.

Your Shareholders Agreement should include:

  1. Shareholder contributions and funding
  2. Director appointments
  3. Management responsibilities and information sharing
  4. Dividends and financial matters
  5. Share transfers and exits
  6. Confidentiality and non-compete agreements
  7. Handling shareholder defaults
  8. Dealing with deadlocks and disputes​​

When do you need a Shareholders Agreement?

​​Now! Don’t wait until it’s too late! Speak to our Legal team today.

If you have more than one (1) shareholder, don’t wait until it’s too late – speak to our Legal team today about protecting, nurturing, and preserving your company and personal investment today!

This publication is intended for information purposes only and should not be regarded as financial or legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as financial or legal advice.  If there are any issues you would like us to advise you on arising from this publication, please let us know.