Shareholder Agreement for a New Company
This Shareholder Agreement Template has been drafted for new companies, of which the Shareholders wish to formalise and record the terms and conditions of their relationship with one another within the Company.
What is a Shareholder Agreement?
A Shareholder Agreement is a legally binding contract made between the Shareholders of a Company. It protects the interests of all Shareholders by setting out important rules, such as the relationship between shareholders, their rights and responsibilities, and how the Company is to be run. This helps to safeguard both minority and majority Shareholders by regulating future developments in the Company.
LegalPath’s Shareholder Agreement template has been drafted by a solicitor and covers a comprehensive range of provisions, including important clauses like the drag along and tag along clauses, and pre-emption rights in the transfer or issuing of shares. The template also regulates the appointment of Directors and how they may make decisions regarding the Company.
What is included in this Shareholders Agreement template?
This kit contains one easy to complete, legally valid Shareholder Agreement template, as well as accompanying explanatory notes and a Share Certificate.
Agreement Contents
- Parties
- Definitions
- Interpretation
- Preamble
- Shareholding
- Main Object of the Company
- Directors and Management of the Company
- Restrictive Covenants
- The Shareholders' Voting Rights and Meetings
- Matters Requiring the Consent of a Special Majority
- Funding
- Dividend Policy
- Borrowing and Guarantees
- Financial Matters
- Transfer of Shares
- Obligatory Transfer Events
- Completion of Share Purchase
- Fair Value
- Issue of Further Shares
- Drag Along
- Tag Along
- Confidentiality
- No Partnership
- Notices
- Serious Deadlocks: Resolution of Disputes
- Termination
- Governing Law and Jurisdiction
- Utmost Good Faith
- Severance
- Variation and Waiver
- Assignment
- Costs
- Conflict with Memorandum and Articles
- Entire Agreement
- Third Party Rights
- Counterparts