Shareholder agreements are constructed by start-up companies who are additional to company’s constitution. The legal relationship (obligations, rights, liabilities) between the company and its shareholders as well as between the shareholders themselves is defined by shareholder agreement. Shareholders who purchase shares in a registered company are not automatically bound to the terms of the shareholder agreement. This issue can be overcome by companies using a deed of accession. By signing the deed of accession, incoming shareholders agree to be bound by the provisions of the existing shareholder agreement.
-Balancing the rights
-Carefully balancing the rights of minority and majority shareholders is the work of a good shareholder agreement.
Commercial Lawyers Perth, is a firm with experienced and professional lawyers who can help you with any kind of contracts or agreements. Our commercial business lawyer Perth has immense experience in advising and counseling clients with respect to shareholder agreement. If you need any legal advice on shareholder agreement, contact us and we will arrange a meeting where we may consider your particular circumstances.
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Shareholders’ Agreements generally include clauses dealing with:
- deadlock provisions developed to break a deadlock between shareholders as to the management of the company;
- substitute dispute resolution provisions to help shareholders to settle disputes without recourse to legal action;
- pre-emptive rights provisions, such as the right of first non-acceptance if a shareholder desires to sell his or her shares or the need of the consent of the Board of Directors;
- provisions setting out triggering events needing the shifting of shares to existing shareholders, such as the death of a shareholder, insolvency events, serious breaches of the Shareholders’ Agreement or loss of required certification etc.; and
- share valuation procedures.
Commercial lawyers Perth, can help you with:
- drafting a agreement
- considering the terms of the Constitution of the company
- advising time to time on the amendment of the Shareholder agreement
- advising and representing in the time of disputes
For any further queries or more information, get in touch with us – Commercial Lawyers Perth.