Shareholder Agreement Lawyers Melbourne
Shareholder Agreements
When a business has more than one shareholder, having a clear agreement about how the business will be owned and managed can help prevent disputes and provide certainty when circumstances change.
At Alpine Legal, we prepare and review shareholder agreements for private companies, helping shareholders establish clear arrangements about ownership, decision-making, responsibilities and what happens when a shareholder wants or needs to leave the business.
What Is a Shareholder Agreement?
A shareholder agreement is a contract between some or all of the shareholders of a company that sets out how the company and the relationship between shareholders will operate.
A well-drafted agreement can address issues that may not be adequately covered by the company's constitution or the Corporations Act.
What Can a Shareholder Agreement Cover?
Depending on the circumstances, a shareholder agreement may deal with:
Ownership and shareholdings
Decision-making
Voting rights
Appointment of directors
Responsibilities of shareholders
Funding and capital contributions
Dividends
Restrictions on transferring shares
Sale of shares
Pre-emptive rights
Deadlock between shareholders
Dispute resolution
Death or incapacity of a shareholder
Retirement or exit
Restraints and confidentiality
Business sale arrangements
The appropriate provisions will depend on the nature of the business and the relationship between the shareholders.
What Happens If a Shareholder Wants to Leave?
One of the most important functions of a shareholder agreement is establishing what happens if circumstances change.
A shareholder may:
Want to sell their shares
Retire from the business
Become unable to work
Die
Experience financial difficulties
Fall into dispute with another shareholder
Without an appropriate agreement, these situations can create uncertainty and potentially lead to costly disputes.
We can help establish clear processes for dealing with these circumstances.
Shareholder Deadlocks & Disputes
Disagreements between shareholders can significantly affect a business.
A shareholder agreement can establish mechanisms for resolving disputes and dealing with deadlocks before they escalate.
We can advise on appropriate dispute resolution mechanisms and help shareholders understand their rights and obligations under an existing agreement.
Reviewing an Existing Shareholder Agreement
If you are buying into a business or becoming a shareholder, it is important to understand the shareholder agreement before committing.
We can review an existing agreement and advise you about:
Your rights and obligations
Restrictions on selling your shares
Voting arrangements
Exit provisions
Financial obligations
Dispute mechanisms
Personal obligations
Potential risks
How Alpine Legal Can Help
We assist with:
Preparing shareholder agreements
Reviewing existing shareholder agreements
Advising shareholders before entering into an agreement
Advising on shareholder rights and obligations
Share transfer arrangements
Exit and succession provisions
Deadlock provisions
Shareholder disputes
Updating agreements when circumstances change
Our focus is on creating practical agreements that reflect how the business actually operates.