As lawyers we are often asked to draft a shareholders agreement. It is important to understand that not all shareholder agreements are the same. The circumstances and requirements for each company are different. Care should be taken when preparing a shareholders agreement. A shareholders agreement is intended to work alongisde the company constitution to govern the relationship between shareholders and directors with more specific rules, rights and obligations. Although the company constitution and shareholders agreement both govern similar rights and obligations they do address different topics depending on the circumstances of the company.
So, if you’re planning on investing in a company, you probably expect that your investment will allow you to realise certain benefits in the future. Perhaps you’ve been promised a share in the company’s profits, or offered a managerial role in the business or may have acquired a new franchised business with several shareholders. Whatever your plans, a well drafted shareholders agreement is essential to have in place before you buy in.
Contact Rostom Manookian, 0416 716 960 or email rostom@manookiansolicitors.com to guide you through the process of negotiating and drafting a solid shareholders agreement. We offer fixed fee legal services to give you clarity and certainty.
Comments