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We prepare tailored shareholder agreements that lock in decision-making rights, protect against unwanted share sales, and set clear rules for exits, profits, and dispute resolution—so you’re never caught off guard.
Shareholders agreement issues are often ignored—until it’s too late.You might have co-founded your company with friends, family, or trusted investors. Things were clear in the beginning, but now decisions take longer, disagreements are creeping in, and no one’s sure what happens if someone wants to leave or bring in new investors. Without a proper agreement, you’re exposed to costly disputes, lost control, and unclear exit paths.
These problems don’t fix themselves—they get worse.A minor disagreement today can turn into legal action tomorrow. If one shareholder sells to a stranger, or if a 50/50 split results in deadlock, your entire business could grind to a halt. Worse, without agreed rules, you may lose your say in key decisions, or face shareholder claims that drain time, money, and energy.
That’s where we come in.We prepare clear, enforceable shareholder agreements that define roles, protect your control, and prevent future disputes. You’ll know exactly where you stand, what happens when someone exits, and how decisions get made—so you can focus on growing the business, not fighting over it.
We draft detailed agreements that clearly set out each shareholder’s rights, responsibilities, and dispute resolution pathways—so disagreements are resolved quickly and don’t escalate into litigation.
We include tailored provisions that lock in decision-making powers, restrict share transfers, and prevent unwanted dilution—ensuring your say in key decisions is safeguarded.
We build in clear procedures for selling shares, bringing in new investors, and valuing the business—so you're prepared when circumstances change and growth opportunities arise.
We guide shareholders through a structured agreement process that encourages transparency and upfront alignment—reducing misunderstandings and setting a strong foundation for the business.
From startup founders to established company owners, our clients value the clarity, protection, and peace of mind our shareholder agreements deliver.
Every detail works to reduce risk, preserve control, and give you confidence in every shareholder decision.
Understand the legal essentials of shareholder agreements—what they cover, why they matter, and how they protect your business from costly surprises.
A shareholder agreement is a private contract between the owners of a company that sets out their rights, responsibilities, and how the business is run. It helps prevent disputes by establishing clear rules from the outset.
No, it’s not legally required—but it is highly recommended. Without one, shareholder disputes are harder to resolve and often rely solely on the Corporations Act and the company constitution.
A constitution is a public document that governs the company as a whole. A shareholder agreement is a private contract that can cover more detailed and tailored arrangements between shareholders.
Ideally, at the formation of the company or when new shareholders are introduced. It becomes harder to agree on terms once disputes arise or stakes increase.
Common clauses include share transfers, voting rights, dividend policy, dispute resolution, exit strategies, capital raising, drag-along/tag-along rights, and restrictions on competing businesses.
The agreement can specify a step-by-step process such as negotiation, mediation, arbitration, or court action, allowing faster and more controlled resolution.
The agreement can require them to offer shares to existing shareholders first (pre-emptive rights), and set rules for valuation and approval.
The agreement can require board or shareholder approval and set conditions for entry, ensuring alignment with existing owners.
The agreement can give minority shareholders veto rights, tag-along rights, and access to information, helping ensure their interests are respected.
The agreement can establish whether dividends are paid regularly, only from profits, or at the discretion of the board or shareholders.
Yes, “compulsory transfer” clauses can require a shareholder to sell in cases like insolvency, breach of the agreement, or employment termination.
Drag-along rights allow majority shareholders to force a sale of all shares. Tag-along rights let minority shareholders join a sale to ensure equal treatment.
The agreement can set out valuation methods (e.g., market value, independent expert, formula-based) to avoid disputes over pricing.
The agreement can prohibit sales to third parties without approval, set lock-in periods, or require certain criteria to be met before shares can be sold.
Deadlock clauses can include casting votes, buy-sell mechanisms, or triggering dispute resolution processes to break the stalemate.
Yes, reasonable non-compete and confidentiality clauses can prevent former shareholders from damaging the business after exit.
It should be reviewed every few years or when key events occur—such as new shareholders joining, a restructure, or a planned sale.
Most agreements require unanimous or majority shareholder consent to make amendments, depending on the terms set out in the agreement.
No, shareholder agreements are private and do not need to be filed with ASIC or any government body.
A lawyer ensures the agreement is tailored, enforceable, and covers key risks. They help negotiate fair terms and align it with your constitution and Australian law.
A well-drafted shareholder agreement protects your business, your rights, and your future. Speak to us today and take the uncertainty out of ownership.