When starting a company, it is important that due consideration is given to the agreements that will help shape and support your business plan.
One of the most important documents that needs to be put into place is the Shareholders Agreement which outlines the rights and obligations of the shareholders of the company.
A Shareholders Agreement provides the framework for how decisions are made with in the company, how disputes should be managed and the voting power of the respective shareholders. Clarifying these important aspects of the company can help provide a stable foundation and pave the way for a successful future for your company.
A shareholders agreement is a contract negotiated by the shareholders of a company outside the Corporations Act to:
- govern their relationship and business arrangements;
- detail their rights, responsibilities, obligations and liabilities; and
- protect their interests — with regard to their particular circumstances.
It regulates matters not covered by a company’s constitution and is therefore supplementary to a company’s constitution.