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In this edition of ‘It depends’, associate Sacha
Robinson talks about what you should include in the shareholder
agreement for your business.
Welcome to the latest edition of It Depends. Today we will be
discussing what you should include in the shareholder agreement for
What should I include in a shareholder agreement for my
It depends. However, there are some key issues which you should
consider covering in your shareholder agreement.
What are some key issues you should consider when preparing a
Some key issues to cover in your shareholder agreement are the
management and administration of your business, the entry and exit
of shareholders, how the value of the shares in your company will
be determined, business succession funding arrangements, any
pre-emptive rights and tag along drag along provisions, and
director guarantees and who will be required to give them. This is
not an exhaustive list, and there may be other things that you
would like to cover.
Why should the shareholder agreement deal with these issues?
A shareholder agreement which deals with these key issues is
important for a number of reasons, including to ensure the smooth
operation of a business and cooperation between shareholders and
also when transitioning shareholders out of the business.
What should I do next?
It is essential that you get the shareholder agreement for your
business correct, especially when you are taking on any new
Cooper Grace Ward is a leading Australian law firm based in
This publication is for information only and is not legal
advice. You should obtain advice that is specific to your
circumstances and not rely on this publication as legal advice. If
there are any issues you would like us to advise you on arising
from this publication, please contact Cooper Grace Ward
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